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Bitcoin ETFs: Australia Approval Could Reach 4.5M People in Election Year

Last Updated April 29, 2024 1:27 PM
Shraddha Sharma
Last Updated April 29, 2024 1:27 PM

Key Takeaways

  • Australia is gearing up for multiple Bitcoin exchange-traded fund (ETF) launches in 2024.
  • Van Eck Associates Corp. could be one of the many ETF issuers.
  • Elections often coincide with or follow Bitcoin ETF approvals.

At the beginning of 2024, rumors circulated that Australia might hold an early election. However, it was later confirmed that the next election would not occur until 2025. Meanwhile, the country is reportedly preparing to introduce several Bitcoin ETFs, which could impact its voter base.

Australia Prepares for Bitcoin ETF Launches

Australia is expected to see a flurry of Bitcoin exchange-traded fund (ETF) launches soon, according to a source-based report  by Bloomberg. The country is emulating the crypto path of countries like the United States and aligning with its elections.

Van Eck Associates Corp., DigitalX Ltd., and BetaShares Holdings Pty are rumored to be key issuers. Another notable application includes one from Monochrome Asset Management, led by former Binance Australia CEO Jeff Yew. The largest equity trading marketplace, ASX Ltd., is anticipated to approve the first spot-Bitcoin ETFs before the end of 2024.

Despite these developments, the ASX has not committed to a specific timeline but continues to engage with various issuers as per the report.

Bitcoin ETF Inflows and Crypto Engagement

In 2022, Cosmos Asset Management launched a spot Bitcoin ETF. Reports say that it was delisted later due to low inflows. In contrast, the Global X 21Shares Bitcoin ETF managed about $62m in assets. 

It is worth noting that Australia requires adherence to strict crypto frameworks. For instance, any platform operator must hold an Australian market license. Unauthorized trading of financial products may lead to significant legal breaches.

Despite that, players are entering the market due to high adoption and engagement. According to a Swyftx report , the number of Australians who currently own cryptocurrency has steadily increased. The figure stands at 4.5m for 2023 from 4.2m in 2022, and 3.4m in 2021. Cryptocurrency adoption among millennials has also surged from 35.6% to 40.7%, with an estimated 32.4% of Australians having owned digital assets at some point.

The figures make crypto investors a strong voter base for the elections in 2025. In Australia, the left-leaning Labor won the elections in 2022 after multiple terms held by the conservatives. Scott Morrison led the Liberal-National Coalition lost to the opposition.

The Australian Labor Party (ALP) has focused on investor protection with the treasurer unveiling laws for crypto players in 2023.

The Crypto Election Connection

Spot Bitcoin ETFs are increasingly intertwined with political developments. For instance, the recent victory of the Democratic Party of Korea (DPK) in South Korea’s general elections has set the stage for potential regulatory easing around crypto products. The DPK’s party agenda included the allowance of spot Bitcoin ETFs, signaling a political willingness to embrace the crypto voter base.

Hong Kong’s Securities and Futures Commission approved the launch of spot Bitcoin and Ether ETFs shortly after the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in early January 2024.

 US presidential elections will take place in November 2024, with the launch of Bitcoin ETF preceding US elections.

A previous Coinbase report  highlighted the influence of younger voters, noting that Millennials and Gen Z adults, who are highly likely to support crypto-friendly candidates, will constitute a majority of the voting-age population by 2028.

Parties Woo Crypto Voters

Electoral politics has become more pronounced in 2024 with the debut of spot crypto ETFs. Australia’s move towards Bitcoin ETFs could be just a part of a broader global trend where financial innovation is being linked to voter choices.

The development in Australia suggests that the ruling Labor Party is increasingly recognizing the importance of the crypto electorate, after snatching power from the conservatives. This is a trend that will likely expand as more Australians engage with digital assets.

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