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The Australian Securities and Investment Commission (ASIC) has approved investors to offer, buy, and exchange Bitcoin and Ether on the regular stock market, which is fantastic news for Australian investors. This comes after the Australian Securities and Investments Commission approved Bitcoin and Ethereum spot ETFs.

A list of recommendations

On Friday, the Australian Securities and Investment Commission announced a set of recommendations on the criteria for crypto exchange-traded products, allowing investment managers to offer consumers ETFs backed by cryptocurrencies. Investors will be able to have direct exposure to cryptocurrencies as a result of this.

ASIC’s decision to approve ETFs occurred after a series of conversations among various authorities about how to regulate Exchange Traded Products (ETPs) under the digital assets category.

One of the first to approve exchange-traded funds (ETFs)

With the approval of ETFs, the Australian Securities and Investment Commission became one of the first authorities to allow spot ETFs for cryptocurrencies. However, while crypto assets have certain unique characteristics, they also have some dangers that market issuers and market operators must address to fulfill certain regulatory criteria, according to ASIC Commissioner Cathie Armour.

“The good practices we published provide practical examples of how these obligations may be met, in a way that maintains investor protections and Australia’s fair, orderly and transparent markets.”

Traditional investors can now invest in cryptocurrency

Traditional investors now have an ETF to monitor the values of key cryptocurrencies, allowing them to get exposure to the crypto industry, thanks to the approval of the Bitcoin and Ethereum ETFs. After receiving permission from the Securities and Exchange Commission, the Bitcoin Futures ETF was launched in the United States last week.

ASIC has been considering authorizing such funding for some time, and today’s news comes only weeks after Liberal Senator Andrew Bragg introduced a comprehensive crypto reform proposal in parliament.

Getting Global Notoriety

The ASIC certification is the second big crypto-asset approval this month, with the first being the SEC permission to launch three Bitcoin Futures ETFs in the United States. In addition, in February 2021, three Bitcoin ETFs were approved for trading on the Toronto Stock Exchange in Canada. Purpose Bitcoin ETF, Evolve Bitcoin ETF, and CI Galaxy Digital have all received approvals.

The Brazilian Securities and Exchange Commission (CVM) also approved QR Capital’s Bitcoin ETF, trading on the Brazilian Stock Exchange in June. This was Latin America’s first exchange-traded fund (ETF).

Boosting Massive Expansion

The emergence of Bitcoin ETFs and Bitcoin Futures ETFs has resulted in a rise in cryptocurrency adoption. ETFs aided institutional adoption in the first quarter of 2021, propelling Bitcoin to a new all-time high.

The ProShares Bitcoin Fund also became the second-most actively traded ETF in history and the first to reach $1 billion in assets under management (AUM). The excitement around the debut of Bitcoin ETFs also contributed to BTC’s new all-time high.

For the growth of its ETF market, Australia is turning to Canada as a model.

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