Financial regulators have greenlit Australia’s first Bitcoin (BTC) exchange-traded fund (ETF) to begin trading on April 27, and the Australian Financial Review reports it could see up to $1 billion in inflows.
An ETF is a regulated exchange-traded fund that allows investors to benefit from the price of Bitcoin without needing to own any coins themselves directly.
Cosmos Asset Management beat out local contenders VanEck, BetaShares and EFT Securities to issue Australia’s first Bitcoin ETF. Each firm has been in the running to close out regulatory approvals since at least March, according to the Sydney Morning Herald.
The Cosmos Asset Management Bitcoin ETF will be listed on CBOE Australia, with approval from the Australia Securities Exchange (ASX) Clear capital markets clearinghouse. Approval was made after Cosmos landed the minimum of four market participants to support the 42% margin requirements needed to cover risk, according to an article published by AFR on Tuesday.
The Cosmos Bitcoin ETF offers indirect exposure to spot Bitcoin investing through the Canadian Purpose Bitcoin ETF.
Kurt Grumelart, trader at Australian wealth management firm Zerocap, called the ETF approval “exciting” and commented that it “validates further institutional adoption” following the record-breaking launch of the Betashares CRYP fund that invests in crypto-exposed United States Shares. On its launch in November 2021, the fund saw $10 million of net inflows within the first ten minutes.
India’s 30% crypto tax came into law on March 31 and was effective April 1, despite warnings from several stakeholders about its possible ill impact on the budding crypto industry.
As predicted, within just a couple of weeks of the new crypto tax law coming into effect, trading volume across major crypto exchanges dropped as much as 90%. The decline in trading activity was attributed to traders either moving their funds away from centralized crypto exchanges or adopting a holding strategy over trading.
Many crypto exchanges were hoping that a crypto tax would at least offer some form of recognition to the crypto ecosystem and help them get easy access to banking services. However, the effect has been the opposite.
On April 7, the National Payment Corporation of India (NPCI) issued a statement claiming they were not aware of any crypto platforms using the Unified Payments Interface (UPI) — the national fiat payment gateway. While crypto exchanges were not using the UPI directly, they previously partnered with several payment processors with UPI access to facilitate fiat to crypto onboarding.
This is a common strategy incorporated by several leading crypto platforms around the world. Binance has done it in the United Kingdom, Malaysia and a few other jurisdictions after it was prohibited from directly accessing the national fiat payment gateway in respective countries.
Following the NPCI’s April 7 statement, however, payment service providers — ostensibly from an overabundance of caution toward the government’s hostile stance on crypto — began to sever ties with crypto platforms.
It was 2018 when privacy-focused messaging platform Telegram announced that it was in the process of building a blockchain-based decentralized computer network technology called The Open Network (TON).
However, following a lengthy litigation battle that lasted until May 2020 with the United States Securities and Exchange Commission over its $1.7 billion initial coin offering (ICO), Telegram had to sever its ties with the project, leading many to believe that TON was done for.
That said, far from everyone’s expectations, the TON project seems to have found a new lease on life and is thriving. For starters, the TON Foundation recently revealed that it was choosing TONcoin as its official ecosystem fund, securing an initial collective commitment of approximately $250 million from major firms within the industry including Huobi Incubator, KuCoin Ventures, MEXC Pioneer Fund, 3Commas Capital, blockchain startup Orbs and TON Miners.
As part of the development, reports suggest that TONcoin will be working closely with the TON Foundation to deploy the aforementioned sum of money to explore a wide array of opportunities within the nonfungible token (NFT), Web3 and decentralized finance (DeFi) spaces, as well as for the incubation and development of various novel programs, grants, hackathons and more. On the subject, TONcoin Fund managing partner Benjamin Rameau said:
“TON may become the first blockchain network accessible to millions of users thanks to the Telegram integration efforts by the community via in-app bots [...] TON will not just be the blockchain that people use on Telegram — it will define people’s online identity and will act as a bridge between all their Web3 and Web2 activities.”
This Daily Dose was brought to you by Cointelegraph.