DigitalX Bitcoin ETF (BTXX) Joins Previously Launched Offerings, Targeting Growing Cryptocurrency Investment Demand

Sydney-based asset manager DIGITALX has secured approval from the Australian Securities Exchange (ASX) to introduce a Bitcoin ETF (exchange-traded fund)

Sydney-based asset manager DIGITALX has obtained 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.

The ETF will Track the DigitalX Bitcoin Index (BTHX), which is designed to measure the performance of the largest cryptocurrency by market capitalization. The ETF will be fully hedged and will physically hold Bitcoin in a custody arrangement with Fidelity Digital Assets.

DigitalX Partners With K2 Asset Management, 3iQ For Bitcoin ETF

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.

The ETF will be available to investors on the ASX, providing a regulated and accessible avenue to gain exposure to Bitcoin. DigitalX CEO, Lisa Wade, shared her thoughts on the introduction of the Bitcoin ETF in a statement:

“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.

Bitcoin ETF Market In U.S. Sees Bullish Inflows As BTC Price Rises 3%

In the United States, the Bitcoin ETF market experienced a bullish day on Monday, with a significant inflow of nearly $300 million. This contributed to a 3% rise in the price of the flagship digital asset within the 24-hour timeframe.

Bitcoin is currently trading at $57,300, displaying resilience despite a recent 20% price drop from its peak of $70,000 last week to as low as $53,500 on Friday. The market has been facing selling pressure due to Mt. Gox’s ongoing repayments and the German government’s large BTC transfers to exchanges for sale.

However, this substantial inflow into the ETF market suggests that investors are seeking to accumulate the digital asset at a potentially discounted price, indicating a bullish sentiment in the market.

Moreover, 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

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