However, both investment managers agree that proper regulation will need to be in place before such an outcome could be achieved, with the main sticking point for the Australian Securities and Investments Commission being how fund operators would manage the custody of digital assets such as Bitcoin, given Australia does not currently have a custody regime for crypto.
Senator Andrew Bragg’s recent parliamentary report into the cryptocurrency space includes a recommendation that Australia establish a custody regime, a move Mr Behncke says would be critical in streamlining crypto ETFs in Australia, though he said overseas custody in more crypto-friendly regimes such as Wyoming in the US, could act as an interim solution.
“I definitely think there’s a lot of investors keen on a Bitcoin ETF, but it’s still early in conversations,” he said. “There’s definitely a pent-up demand for it, but it’s about having the right structure that that market participants can actually engage in.”
In the meantime, Betashares has set up its own cryptocurrency-sector ETF which invests in crypto-adjacent businesses such as Bitcoin miners and listed exchanges like Coinbase. Mr Vynokur likened it to investors who sold picks and shovels during the Gold Rush.
“Those are the companies that are really well-positioned to benefit from the growth in the crypto economy, almost irrespective of the price of Bitcoin or any other cryptocurrency,” he said.
“It’s a different way to participate in the disruption and change that crypto is bringing upon us.”
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