Blockchain-focused asset manager DigitalX has received regulatory approval to launch its spot Bitcoin exchange-traded fund (ETF). This makes DigitalX the second company to offer a Bitcoin ETF on the Australian Securities Exchange (ASX), following VanEck's recent approval.

DigitalX Bitcoin ETF Launch

The DigitalX Bitcoin ETF, listed under the ticker BTXX, will debut on July 12 at 10 a.m. local time. The firm announced this on July 8.

"Watershed Moment" for DigitalX

DigitalX's CEO, Lisa Wade, is hailing the regulatory approval for BTXX as a "watershed moment. "We are pleased to be now able to deliver and offer this spot Bitcoin ETF to the Australian market.

This is a watershed moment for us as a business and for the Australian digital asset investment market," said Wade. She emphasized that the ETF provides ASX customers direct access to Bitcoin through a regulated and liquid fund structure.

To bring the spot Bitcoin ETF to fruition, DigitalX has partnered with K2 Asset Management, which will act as the responsible entity and issuer of the ETF. Additionally, DigitalX will collaborate with cryptocurrency-focused investment firm 3iQ to promote and distribute the product in Australia and internationally.

Comparison with VanEck's Bitcoin ETF

The regulatory approval comes just over three weeks after the ASX granted approval for VanEck's spot Bitcoin ETF on June 15. Trading will commence on June 20.

While VanEck's Bitcoin ETF (VBTC) saw a modest volume of $1.3 million on its first trading day, it pales compared to the daily average of $450 million seen by the nine spot Bitcoin ETFs in the United States during their initial ten trading days.

Another Australian fund manager, Betashares, is reportedly pursuing a Bitcoin ETF on the ASX, as indicated in an April report from Bloomberg.

Digital Asset Products See Inflows

The approval of DigitalX's Bitcoin ETF comes at a time when digital asset investment products are experiencing significant inflows.

CoinShares, a digital asset and fintech investment business, reported inflows totaling $441 million, driven by investors perceiving the recent price weakness caused by Mt. Gox and the German government's selling pressure as a buying opportunity.

While exchange-traded product (ETP) volumes remained relatively low at $7.9 billion, in line with the seasonal pattern of lower volumes during the summer, inflows into digital asset investment products remained robust. However, the participation rate of ETPs in the total market for trusted exchanges was 17% lower.

Crypto Market Growth in Australia

Australia's crypto market has seen significant ownership and adoption growth over the past few years. As reported, the crypto ownership rate in Australia is 17%, which is higher than the global average of 15%.

It is worth noting that crypto has been under increasing scrutiny in Australia. In May last year, cryptocurrency exchange Binance Australia told customers they would lose access to Australian dollar deposits and withdrawals due to a decision by its third-party service provider.

In July, officials from the Australian Securities and Investments Commission (ASIC) even searched Binance Australia's offices.