2CP Asset Management’s ETF will begin trading on the ASX on May 12.
The ETF will track the spot price of Bitcoin and will be physically settled.
The Australian Securities Exchange (ASX) has approved the listing of a second Bitcoin exchange-traded fund (ETF). The ETF, which is managed by 2CP Asset Management, will begin trading on May 12 under the ticker code EBTC.
The ETF will track the spot price of Bitcoin and will be physically settled. This means that the ETF will hold actual Bitcoin, rather than futures contracts. This is in contrast to the first Bitcoin ETF to be listed on the ASX, which is managed by Cosmos Asset Management and is settled in cash.
The approval of a second Bitcoin ETF on the ASX is a significant development for the Australian cryptocurrency market. It shows that there is growing interest in Bitcoin from both retail and institutional investors.
The launch of the EBTC ETF is expected to further increase the liquidity of the Bitcoin market in Australia. This will make it easier for investors to buy and sell Bitcoin, and should help to reduce the volatility of the Bitcoin price.
Benefits of Investing in a Bitcoin ETF
- Diversification: Bitcoin ETFs can help investors to diversify their portfolios by adding exposure to the cryptocurrency market.
- Convenience: ETFs are a convenient way to invest in Bitcoin, as they can be bought and sold like stocks.
- Regulation: ETFs are regulated by the ASX, which provides investors with a level of protection.
However, it is important to remember that Bitcoin is a volatile asset and its price can fluctuate significantly. Investors should only invest in Bitcoin if they are prepared to lose money.
Conclusion
The approval of a second Bitcoin ETF on the ASX is a positive development for the Australian cryptocurrency market. It shows that there is growing interest in Bitcoin from both retail and institutional investors.
ETFs can be a convenient and cost-effective way to invest in Bitcoin. However, it is important to remember that Bitcoin is a volatile asset and investors should only invest in Bitcoin if they are prepared to lose money.
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