ETF News: The Australian Securities and Investment Commission said that crypto-exchange-traded funds (ETFs) could present “the risk of harming consumers and markets.”
In the consultation document released Wednesday, ASIC reportedly showed that it allows crypto funds on the Australian Securities Exchange (ASX). ASIC stated that these products must be carefully developed and regulated to maintain market integrity.
ASIC stated that “crypto-asset ETFs have new and unique features that require evaluation of whether such products support fair, orderly and transparent markets and comply with our regulatory framework.”
Australia has taken a rather liberal streak in crypto in the past.
Is it legal to use cryptocurrencies in Australia?
In May, Australian Financial Services Minister Jane Hume announced that they would not stand in the way of any Australian looking to invest in crypto.
Speaking at the Association of Securities and Financial Advisors conference, Hume said, “I want to make one thing clear: Cryptocurrency is not a fad, it is an asset class that will grow in importance. If you want to invest in Dogecoin, I will not stand in your way. Personal opportunity and personal responsibility are two sides of the same coin,” she said.
While Australia seems enthusiastic about crypto, it is trying to catch up. Crypto ETFs have been trading in Canada for months.
Canada embraces crypto ETF industry
By April of this year, Canada had eight crypto ETFs, four dedicated to Ethereum and four dedicated to Bitcoin.
Further south, the United States grapples with the prospect of a Bitcoin ETF. While a number of firms, including Ark Invest, Kryptoin, and VanEck, have filed with the Securities and Exchange Commission, the SEC has yet to approve any cryptocurrency ETF applications.
Despite the reluctance of the SEC, some high-profile Bitcoin users such as SkyBridge Capital’s Anthony Scaramucci, who has a Bitcoin ETF implementation, are claiming that the US will accept its first crypto ETF in the not-too-distant future.