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Buying into cryptocurrency without directly buying cryptocurrency recently became a lot easier in Australia. Aligning more with those looking for a trading platform for beginners, there are now dedicated investment vehicles that cater to specific crypto investments without making a direct crypto purchase. This comes in the form of Australia’s first spot ether ETF, which is directed at helping to invest in Ethereum.
Now, a spot ether or bitcoin ETF – or rather, a spot exchange-traded fund – aims to make investing in cryptocurrencies both convenient and more secure than the traditional pathway. As Ethereum or Bitcoin rise or fall in price, the investment adjusts in real time. Importantly, these ETFs also fall under the purview of regulatory bodies, which will also make crypto investment more appealing to many would-be investors.
The Launch of Australia’s First Spot Ether ETF
In October, the first spot ether ETF went live in Australia. Given the popularity of crypto adoption and use in the country already, there’s a good chance that these ETFs will prove popular. On the flip side, crypto adoption in its standard form has been strong enough to suggest that those who want it have already bought their coins. Still, crypto in all forms is finding an audience Down Under.
Crypto’s Already Big Business for the Aussies
Australia is seen as a world leader when it comes to cryptocurrency adoption and growth. The country is home to some 27 million people. Of those, 4.6 million Aussies own cryptocurrency of some kind. This figure places the country as having the third-highest rate of cryptocurrency adoption in the world, with Bitcoin being the most popular. After Bitcoin, Ethereum is the next most popular, followed by Cardano, Dogecoin, and Binance Coin.
A few main factors are helping to fuel the adoption of cryptocurrency. The first is the government’s much more welcoming stance on virtual assets – which has, in turn, helped to launch the headline spot ether ETF and bitcoin ETF in 2024. As well as this – which is very much a more general global trend – cryptocurrency is becoming much more useful as a form of payment.
Easily the clearest-cut sector to see this in action is in online casino gaming – specifically when it comes to playing roulette online for real money. The Australian platform operates in real money bets on its games like American roulette, classic American roulette, European roulette, and classic European roulette. Naturally, most players put their real money bets on European games as they have the lower house edge.
This is important because Ignition Casino needs bets coming in to relay some into winnings for players who land a winning bet on number nine, for example. So, the fact that the site not only allows crypto as a payment method for its real money betting but also advertises being able to play online roulette with cryptocurrency gives crypto even more validity and shows that there’s a demand to use it online in Australia. Bitcoin roulette, pokies, poker, blackjack, and more can all be played for real money via crypto.
The other big selling point of crypto in Australia is what helped to make the digital currency become a mainstream concept way back in 2017. The volatility of cryptocurrency remains a huge draw for those outside of the more entrenched crypto communities. This year, Bitcoin reached a new all-time high price of over $73,700, naturally encouraging more to jump in, buy some crypto, and wait for the next surge.
Monochrome Increasing Crypto Accessibility
According to the source linked above, about six in ten Australians are making use of a hot wallet for their crypto activities. This is to say that they’re using online digital wallets rather than cold storage devices that can go offline and store keys. While there is an element of increased convenience behind this, the heavy use of hot wallets would lean towards many investors wanting quicker access so that they can buy and sell swiftly where necessary.
Where a spot ether ETF comes into play is to facilitate these Aussies who want to be able to invest with ease. Crypto asset management platforms, hot wallets, and the like aren’t necessary. Instead, people invest in the ETF, which offers a way to benefit from the price of Ethereum, in this example, as its rises in real time. In Australia, the introduction of these investment products was achieved by Monochrome.
launched The Spot Bitcoin ETF
Having launched the spot bitcoin ETF in the summer, Monochrome was permitted to go ahead with its spot ether ETF in October. It’ll take some time to gauge the popularity and success of the spot ether ETF, but the bitcoin ETF is already holding around $10 million worth of bitcoin (around 165 BTC). Naturally, the US-based ETFs are far, far larger, with crypto stacks worth in the billions.
The ETFs present another way for Australians to engage with crypto and will only increase the interest in owning the coins outright as familiarity with the likes of ether and bitcoin increases.
