November 13, 2023 [crocon media – dgoldsmith, msch] In a significant move that could reshape the landscape of digital asset investment in Australia, DigitalX Limited (ASX: DCC, OTCQB: DGGXF) has announced a strategic partnership with Canadian digital asset fund manager 3iQ. This collaboration, formalized through a non-binding Memorandum of Understanding (MoU), is set to explore the launch of a spot Bitcoin Exchange-Traded Fund (ETF) on the Australian Securities Exchange (ASX).
The partnership brings together DigitalX’s expertise in the burgeoning field of digital assets and 3iQ’s established track record in managing digital asset funds. This synergy is further bolstered by the involvement of K2 Asset Management (K2AM), which will act as the Responsible Entity for the ETF, bringing its extensive experience in managing ASX-listed ETFs and compliance systems.
The proposed Bitcoin ETF, a first of its kind in Australia, aims to provide investors with a regulated, liquid, and straightforward avenue to gain exposure to digital assets. Unlike traditional investment methods that require a digital wallet, this ETF will utilize a trusted fund structure, allowing investors to safely incorporate digital assets into their diversified portfolios.
This initiative comes at a time when global interest in digital assets is surging. In the United States, the anticipation surrounding the approval of spot Bitcoin ETFs by major financial institutions like BlackRock and Fidelity has reignited investor interest in Bitcoin, which has consistently been a top-performing asset class over the past decade.
3iQ, under the leadership of investment industry veteran Fred Pye, has been a pioneer in digital asset investment, establishing North America’s first publicly traded Bitcoin fund on the Toronto Stock Exchange (TSX) and introducing the world’s first Ether staking ETF. K2 Asset Management’s involvement, with its nearly $4 billion assets under management, adds a layer of financial heft and expertise to the venture.
DigitalX CEO Lisa Wade emphasized the evolutionary significance of products like the proposed spot Bitcoin ETFs. She highlighted the ease of access these products provide to investors, aligning with traditional investment channels and regulatory oversight. 3iQ’s Executive Chairman Fred Pye expressed excitement about bringing digital asset solutions to the Australian market, starting with the Bitcoin ETF.
While the MoU is non-binding and does not guarantee a final agreement, it represents a significant step towards integrating digital assets into mainstream investment platforms in Australia. The collaboration aims to leverage each party’s strengths in digital asset investment and operational expertise, along with joint marketing and distribution initiatives.
The potential launch of a Bitcoin ETF in Australia signals a maturing digital asset market and could set a precedent for other countries to follow. It represents a confluence of innovation, regulatory foresight, and market demand, positioning Australia as a potential leader in the global digital asset space.
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