The listing of Australia’s first Bitcoin (BTC) exchange-traded fund (ETF) on the Cboe equities trading platform will take place next week, serving as the country’s first major test of widespread customer demand for cryptocurrency.
After a sufficient number of market players agreed to stringent margin restrictions, the clearing house that controls access to the country’s equities capital markets will grant the green light for the country’s first Bitcoin ETF, according to a report by the Australian news outlet AFR.
ASX Clear, a powerful clearing house at the heart of Australia’s equity capital markets, now has four market participants willing to put their money where their mouth is and meet the stringent margin requirements required to cover the settlement risks associated with Bitcoin.
It is believed that there are currently three institutional-grade clearing participants and one big retail clearing player that are prepared to pay the 42 percent margin required by ASX Clear before permitting trading in a Bitcoin ETF to commence.
Chief risk officer at ASX, Hamish Treleaven, said:
“We are now at our minimum number of clearing participants and that means we are good to go.”
Bitcoin ETF is ready to trade on April 27
Treleaven will send out a notice to market participants on Wednesday, April 20, informing them that ASX Clear has received regulatory permission.
Brokers, clearers, clearing participants, market makers, and investors will have seven days to prepare for the launch of the new product.
In other words, the sole Bitcoin ETF product now in front of ASX Clear, the Cosmos Asset Management Bitcoin ETF – will be able to begin trading on the Cboe on April 27, when the market opens. $1 Billion is expected to flow into Australia’s first Bitcoin ETF when it lists next week.
Interestingly, opponents said the delay in accepting ASX Clear’s application to trade a Bitcoin ETF was intended to preserve the ASX trading venue from the competition.
Notably, it has been two years since the Australian Securities and Investments Commission (ASIC) wrote to a Bitcoin financial promoter, stating that a listed retail Bitcoin product in Australia was not permitted at the time.