DigitalX Bitcoin ETF (BTXX) Targets Institutional Investors, Set to List on ASX This Week

Lisa Wade, CEO of DigitalX, believes the launch of their Bitcoin ETF “will attract new entrants into the market and ultimately allow institutions to include Bitcoin and digital assets into strategic asset allocations”.

DigitalX’s highly anticipated Bitcoin exchange-traded fund (ETF) is finally set to begin trading on the Australian Securities Exchange (ASX).

The ETF, which will trade under the code “BTXX,” will offer Australian investors a direct and regulated way to gain exposure to Bitcoin.

Lisa Wade, the chief executive officer of DigitalX, said the listing will “attract new entrants into the market and ultimately allow institutions to include Bitcoin and digital assets into strategic asset allocations.”

“The ASX, which accounts for about 80% of Australia’s equities trading volume, is a well-established and trusted platform for investors,” she added.

“Unlike its competitor, Cboe Australia, the ASX offers greater liquidity and broader market acceptance.”

DigitalX’s BTXX takes a different approach compared to VanEck’s VBTC, which was the first spot Bitcoin ETF to be listed on the ASX.

Notably, the BTXX is not beholden to the vagaries of US politics. Unlike VBTC, which tracks an American Bitcoin Trust (HODL), the BTXX operates solely under Australian regulations, offering a layer of insulation for domestic investors.

Australia’s Bitcoin ETF Evolution

While BTXX marks the second spot Bitcoin ETF on the ASX, Australia has dabbled in similar products for a while now.

In April 2022, Cboe Australia witnessed the launch of the first-ever Bitcoin ETF in the country – the Global X 21Shares Bitcoin ETF (EBTC). This product utilized a unique wholesale-retail feeder fund structure.

Following the EBTC, Cosmos Asset Management introduced the Cosmos Purpose Bitcoin Access ETF. However, this offering was delisted due to the market turmoil caused by the collapse of Terra/Luna and major crypto lenders.

The crypto market downturn put a temporary halt on future listings, but Sydney-based Monochrome Asset Management revived the scene with the launch of their IBTC ETF on the Cboe Australia exchange in June of this year.

The arrival of the BTXX ETF signifies growing confidence in the Australian market for regulated Bitcoin investment products. With two established players now in the game, it will be interesting to see how this space evolves and if it attracts further competition in the coming months.

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