Prior to the introduction of Bitcoin ETFs on the Australian Stock Exchange (ASX), Australia’s securities authority sent out a warning to investors.
According to a local newspaper, an Australian Securities and Investments Commission (ASIC) representative has cautioned about the risks associated with cryptocurrencies as the nation’s first spot Bitcoin exchange-traded fund (ETF) received approval from the Australian Stock Exchange. ASIC spokesperson:
“ASIC has repeatedly warned investors that crypto is risky, inherently volatile and complex.”
The official stated that investors should only take on risk with money they are “prepared to lose.” ASIC’s admonishing position coincides with its ongoing enforcement actions against numerous cryptocurrency firms that are providing unregistered securities.
The latest announcement coincides with the ASX’s approval of its first exchange-traded product related to Bitcoin. Given this context, industry watchers have expressed differing opinions on the launch; market analyst Megan Stals, for example, has noted “much uncertainty” around cryptocurrencies.
Considering Australian investors have had access to Bitcoin ETFs through overseas exchanges for months, Stals predicts that demand will be “slow burn, rather than a tidal wave.” Simon Barnett, a Morgan Financial advisor, underlined the inherent volatility of Bitcoin and cautioned against taking any chances, saying that these levels are “unlike anything seen on a regulated exchange.”
In addition, Barnett advised innovators who were interested in learning more about the leading cryptocurrency to consult a specialist knowledgeable about the field.
But Sharon Goodwin, a senior adviser at 123 Financial Group, says it might take a lot of work to get guidance in Australia on these kinds of things. It is her firm’s policy to prohibit discussing cryptocurrencies with clients, and she claimed that cryptocurrencies are not on the list of allowed items. According to Sharon Goodwin:
“My statement of advice will acknowledge that they have it, but there will be a comment that we are not giving advice.”
Only a small percentage of Goodwin’s clientele have inquired about products with a crypto focus. She noted that although some clients do bring it up, it’s usually regarded as “play money.”
The 124 Financial Advisor anticipates that cryptocurrency will be added to the list of permitted goods “once it has demonstrated a small amount of viability.”
Some market participants have expressed optimism over listing, despite the overall lack of enthusiasm. The plan to list Bitcoin ETFs has been verified by both Digital X, an investment firm, and ETF producer Betashares.
As the company is already working with ASX to get its Bitcoin ETF authorized, Lisa Wade, CEO of Digital X, stated that the company is “very far down the track” with regard to its listing.
Wade also made reference to a proposed Ethereum ETF that follows the second-biggest cryptocurrency in the world and is listed on the ASX. Ever since the U.S. Securities and Exchange Commission last month authorized proposed rule modifications to list spot ETH ETFs, there has been much talk about ETH ETFs.
On June 3, Australia approved the country’s first Bitcoin ETF. The first-ever investment vehicle to directly hold Bitcoin was the ETF offered by Monochrome Asset Management.