US Bitcoin ETF favors Australian approval, but Aussies need to go further

[waybesuricata]

On Oct. 19, 2021, the ProShares Bitcoin Strategy ETF (BITO) launched on the New York Stock Exchange. On its first day, the exchange-traded fund (ETF) saw an influx of close to $1 billion in natural volume and, within 24 hours, Bitcoin (BTC) itself would reach a new all-time high for its price in U.S. dollars. This comes a week after the U.S. Securities and Exchange Commission allowed the ETF’s application to expire, which effectively gave the okay for the product to move ahead.

This marks a significant step for the United States, but has also sent ripples into other markets globally. If BITO continues to be as well received as its first day would imply, then it is likely more and more will want to follow suit. The ETF offers exposure to derivatives from Bitcoin futures contracts, not Bitcoin itself. While purists may find this undesirable, it provides a notable degree of insulation for investors from Bitcoin’s inherent volatility. Other products in other markets with similar philosophies could help assuage the concerns that have kept institutional players at bay for years.

A success story out of a market like the U.S. certainly sheds a positive light on the prospect of similar funds across the globe, and bringing exposure to Australian institutions stands to be a boon for both Bitcoin as well as the nation’s economy. More importantly, this has provided an opportunity for Australia to take the lead on financial innovation and bring cryptocurrency wholly into its financial flock.

And, for the most part, Australia’s legislators agree. A recent report published by the Parliament of Australia’s Select Committee on Australia as a Technology and Financial Centre proposed the framework that puts Australia on a level playing field with the U.S., the United Kingdom and Singapore.


Source and continuation of news: https://cointelegraph.com/news/us-bitcoin-etf-favors-australian-approval-but-aussies-need-to-go-further