ASIC has repeatedly cautioned investors about the risky, volatile, and complex nature of cryptocurrencies. This warning comes after the ASX recently approved its first Bitcoin-linked exchange-traded product. There are mixed opinions within the industry about this launch, with market analyst Megan Stals highlighting a high level of uncertainty surrounding cryptocurrencies. Financial advisor Simon Barnett also urged caution, emphasizing the unprecedented volatility of Bitcoin and recommending seeking professional advice from someone familiar with the crypto sector.
However, Sharon Goodwin, a senior adviser with 123 Financial Group, revealed the challenge of seeking advice on cryptocurrencies in Australia, as they are not included on the list of approved products. Goodwin noted that only a small number of her clients inquire about crypto-focused products, often regarding them as “play money.” She anticipates cryptocurrencies to be included in the approved products list once they have proven themselves more. Despite the general lack of excitement, some market players, such as ETF issuer Betashares and Digital X, have expressed optimism about listing Bitcoin ETFs.
Lisa Wade, CEO of Digital X, mentioned that the company is making significant progress toward its listing and is collaborating with ASX to get its Bitcoin ETF approved. She also hinted at a potential ASX-listed Ethereum ETF. Australia recently approved its first-ever spot Bitcoin ETF through Monochrome Asset Management.