DigitalX announced on July 19 that Coinbase would serve as the custody partner for its new spot Bitcoin ETF (BTXX). This partnership highlights the exchange’s expanding role in supporting the infrastructure for Bitcoin ETFs worldwide.
Crypto Adoption and Regulatory Climate in Australia
Australia has experienced significant growth in crypto ownership and adoption in recent years. According to independent research by Roy Morgan, over 1.1 million Australians now own at least one form of cryptocurrency. The Australian Tax Office (ATO) revealed that approximately 600,000 Australians have officially declared crypto holdings in their tax returns. Despite this interest and adoption, the regulatory environment for cryptocurrencies in Australia remains challenging.
DigitalX Selects Coinbase as Custody Provider for Its Latest Australian Spot Bitcoin ETF
The BTXX fact sheet, released by DigitalX, confirms this information. BTXX aims to provide returns that mirror Bitcoin’s performance by maintaining long-term holdings of BTC. According to the fact sheet, “The fund is intended to be a passive holder of Bitcoin and will not buy and sell Bitcoin other than to facilitate redemptions and creation of Bitcoin interests.”
Coinbase to Provide Custody for Australian Bitcoin ETF BTXX
DigitalX, an ASX-listed company, has chosen Coinbase to deliver custody and advanced trading execution services for its recently approved Bitcoin exchange-traded fund (BTXX) in Australia. This partnership will offer robust support for BTXX’s infrastructure.
The DigitalX Bitcoin ETF (BTXX) was launched on July 12, following approval from the Australian Securities Exchange (ASX) on July 9. Since the approval of spot Bitcoin ETFs in the United States in January 2024, Coinbase has partnered with ten spot Bitcoin ETFs and eight of the nine newly approved Ether ETFs.
A custodian is a certified company that holds digital assets on behalf of companies or individuals. Custodians play a crucial role in the growth of the ETF market by securing billions of dollars worth of crypto that the ETF owns. The DigitalX spot Bitcoin ETF is not Australia’s first; the country’s first Bitcoin ETF, VanEck Bitcoin ETF (VBTC), was launched on the Australian Securities Exchange (ASX) on June 20. VBTC provides exposure to Bitcoin by investing in VanEck’s US Bitcoin Trust (HODL), listed on the Chicago Board Options Exchange (CBOE).
Crypto Adoption and Regulatory Climate in Australia
Australia’s crypto ownership rate stands at 17%, surpassing the global average of 15%. According to Roy Morgan’s research, the number of Australians engaging with digital assets has reached unprecedented levels. The Australian Tax Office (ATO) reported that approximately 600,000 Australians have declared crypto holdings in their tax returns. A 2022 survey by the Australian Securities and Investments Commission (ASIC) found that cryptocurrencies are the second most popular investment product among Australians, behind domestic shares.
Despite the growing interest and adoption, the regulatory environment for cryptocurrencies in Australia remains hostile. In May 2023, Binance Australia faced challenges and had to suspend Australian dollar deposits and withdrawals due to issues with a third-party service provider. The situation became more complex in July 2023 when ASIC conducted searches at Binance Australia’s offices.
Countries with Active Bitcoin ETFs
- USA
- Brazil
- Canada
- Germany
- Australia
- Hong Kong
- Switzerland
The global adoption of Crypto ETFs is expanding, offering investors innovative ways to engage with the evolving cryptocurrency market.
DigitalX Selects Coinbase as Custody Provider for Its Latest Australian Spot Bitcoin ETF
The announcement on July 19 confirmed that DigitalX selected Coinbase as its custody partner for its new spot Bitcoin ETF (BTXX). This choice underscores Coinbase’s growing role in supporting Bitcoin ETF infrastructure worldwide.
This partnership, announced by DigitalX on July 19, signifies Coinbase’s increasing involvement in the infrastructure supporting Bitcoin ETFs globally.
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