The Cboe equities trading platform will publish Australia’s first Bitcoin (BTC) exchange-traded fund (ETF) next week, marking the country’s first big test of widespread client demand for cryptocurrencies.
The clearing house that governs access to the country’s equity capital markets would give the go-ahead for the country’s first Bitcoin ETF after a sufficient number of market participants agree to rigorous margin limitations.
Four market participants have agreed to put their money where their mouth is and fulfill the severe margin requirements required to cover the settlement risks associated with Bitcoin at ASX Clear, a powerful clearing house at the core of Australia’s equities capital markets.
Three institutional-grade clearing participants and one large retail clearing participant are said to be willing to pay the 42 percent margin required by ASX Clear before trading in a Bitcoin ETF can begin.
On April 27, the First Bitcoin ETF will go Live
On Wednesday, April 20, Treleaven will send a notice to market participants telling them that ASX Clear has acquired regulatory approval.
Market makers, brokers, clearers, clearing participants, and investors will have seven days to prepare for the new product’s introduction.
The Cosmos Asset Management Bitcoin ETF, the only Bitcoin ETF now in front of ASX Clear, will be permitted to trade on the Cboe on April 27, when the market opens. When Australia’s first Bitcoin ETF goes public next week, it is projected to attract $1 billion in investment.
Opponents claimed that delaying the approval of ASX Clear’s application to trade a Bitcoin ETF was done to protect the ASX trading venue from the competition.
Notably, the Australian Securities and Investments Commission (ASIC) wrote to a Bitcoin financial promoter two years ago, noting that a listed retail Bitcoin product was not permissible in Australia at the time.
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