The Australian Securities and Investments Commission (ASIC) has released its response to the publicly traded products (ETP) guidelines along with new industry guidance.
On Friday, the regulator released a set of regulatory requirements for funds wishing to offer crypto ETPs, including exchange-traded funds (ETFs) and structured products, after months of industry consultation that began in late June.
According to official guidelines, the ASIC has so far greenlighted ETPs based on major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) and expects more cryptocurrencies to become the backbone of ETP in the future:
“From October 2021, Bitcoin and Ether are likely to meet the five factors above to determine the correct underlying ETP assets. We expect that the range of non-financial cryptocurrencies that can match these factors will expand over time. ”
“To be a suitable foundation for a crypto ETF, cryptocurrencies must have a high level of institutional support, a mature spot market, a regulated futures market, reputable and experienced service providers and transparent pricing mechanisms,” the directive says.
For each crypto ETF product application, authorized exchanges must assess whether the issuer can meet its obligations in relation to the product, including ensuring secure storage and obtaining the appropriate licenses.
In response to public consultations, the ASIC also stated that it does not require a local cryptocurrency repository for organizations issuing cryptocurrency ETFs, noting that such restrictions would unfairly restrict competition.
The document states: “While acknowledging the concerns expressed by the respondents regarding the offshore devaluation of cryptocurrencies, for example, the possibility of difficulties with the return of assets in different jurisdictions, we consider it inappropriate to delegate the requirement of a local custodian.”
On the subject: More than 40 crypto ETFs are awaiting US approval.
The news comes shortly after the Australian hedge fund manager Cosmos Asset Management on Thursday unveiled a cryptocurrency mining ETF in Chi-X Australia. The Cosmos Global Digital Miners Access ETF has started trading under the ticker DIGA and is tracking several companies such as Riot Blockchain, Marathon Digital, Hive Blockchain Technologies, Hut 8 Mining and others.
BetaShares, an Australian ETF provider, is gearing up to launch a crypto ETF linked to industry companies such as Coinbase and MicroStrategy. The ETF is reported to begin trading on the Australian Stock Exchange under the CRYP index next week.