Sydney-based asset manager DIGITALX has secured approval from the Australian Securities Exchange (ASX) to introduce a Bitcoin ETF (exchange-traded fund), marking the second such product to receive the green light from Australia’s top stock market.
The DigitalX Bitcoin ETF, with the ticker, BTXX, is set to be listed on July 12, according to an official statement released by the company on Tuesday.
DigitalX Bitcoin ETF Joins Previously Launched Offerings
In collaboration with K2 Asset Management and 3iQ, DigitalX has established the Bitcoin ETF to cater to the growing demand for cryptocurrency investment tied to the largest cryptocurrency on the market.
DigitalX CEO, Lisa Wade, expressed her belief that the introduction of the Bitcoin ETF will attract new market participants and enable institutional investors to incorporate Bitcoin and digital assets into their strategic asset allocations.
Wade emphasized the long-term vision behind the decision, recognizing that integrating cryptocurrencies into traditional investment portfolios is ongoing. Wade stated:
I believe this will attract new entrants into the market and ultimately allow institutions to include Bitcoin and digital assets into strategic asset allocations. That’s really why we did it, but that is a much longer game.
As Bitcoinist reported, the ASX approved VanEck’s Bitcoin ETF (VBTC) 3 weeks ago. BetaShares Holdings, a fund manager based in Sydney, has also submitted an application to launch Bitcoin and Ethereum ETFs on the ASX.
While the DigitalX Bitcoin ETF and VanEck’s ETF will be the second pair of Bitcoin ETFs to receive approval from the ASX, it is worth noting that Australia has already witnessed the introduction of two other Bitcoin ETFs in the past two years.
The Global X 21 Shares Bitcoin ETF (EBTC) debuted in April 2022, followed by the Monochrome ETF (IBTC), which commenced trading on the Cboe Australia exchange on June 4.
July Proves Bullish For BTC
On the other hand, the established Bitcoin ETF market in the United States saw a significant inflow of nearly $300 million on Monday, pushing the cryptocurrency price to surge by nearly 3% within the 24-hour timeframe.
Currently trading at $57,300, Bitcoin has shown resilience despite a recent 20% price drop from its peak of $70,000 over the past week to as low as $53,500 on Friday.
This comes as the market has been under selling pressure due to factors such as Mt. Gox’s ongoing repayments and the German government’s colossal BTC transfers to exchanges for sale.
However, this significant inflow into the ETF market signals that investors are looking to accumulate the digital asset at a potentially discounted price, indicating a bullish sentiment in the market.
Furthermore, as reported by our sister site NewsBTC, July has historically been a favorable month for Bitcoin, with an average return of 7.98% and a median return of 9.60%. This positive trend is expected to continue, supported by optimistic macroeconomic indicators and renewed interest in Bitcoin ETFs.
Featured image from DALL-E, chart from TradingView.com