ASX abandons crypto-hostilities, bringing Web3 in from the cold

This year, the Australian Securities Exchange (ASX) has backflipped on its famously hostile view of cryptocurrencies. ASX's attitude first started to evolve in late 2021 with the launch of BetaShares Crypto Innovators ETF.

This first tentative step did not allow direct investing in cryptocurrencies, but instead enabled the punters to get exposure to what investment newsletter Motley Fool described as, “global companies driving the rapidly growing crypto economy."

In Q2, the exchange went further, green lighting the first Bitcoin ETF from Cosmo Asset Management.

Last week the stock exchange listed its first metaverse ETF via BetaShares (ASX:MTAV), prompting Digital Nation Australia to investigate the ASX’s ironic change of heart, amidst increasing crypto market volatility.

An ASX spokesperson told Digital Nation Australia, “We have taken a cautious approach to crypto assets since 2017, when Australia’s first initial coin offering occurred. Many proposals involving digital assets that came to ASX between 2017 and 2019 were not suitable for listing.

“Our thinking has evolved. It is a rapidly developing space and some cryptocurrency assets, such as bitcoin and ether, have gained a degree of acceptance within the market and moved into the investment mainstream.”

The BetaShares Metaverse ETF solidified several other crypto actions ASX has taken in the last six months.

“The listing of US company Block on ASX on 20 January, after its merger with Afterpay, and the launch of crypto ETFs in late 2021, demonstrate ASX’s commitment to bringing investment grade opportunities in various crypto asset classes to market,” the spokesperson told Digital Nation Australia.”

“ASX is aware of the interest in – and improving credibility of – crypto-related businesses. But must strike a balance that protects the interests of the Australian market overall.”

Australian and global enterprises are beginning to see the value in digital currencies, leveraging bitcoin as a hedge against the dollar, and as collateral.

Avivah Litan, distinguished analyst at Gartner Research and specialist in AI and the blockchain told Digital Nation Australia earlier this year, “KPMG Canada just bought Bitcoin for their books. You've probably heard Mass Mutual has done that. Tesla's done it.

“We do see traditional companies getting compliant access into this DeFi world so they can put their money to work and make much higher yields.”

As far as ASX is concerned, it may not be long before the securities exchange creates their own avatars, and buys land in Decentraland, but that’s just us guessing.

“We continue to work closely with issuers and are reviewing our rules framework to ensure appropriate crypto-related offerings can be brought to market prudently," the ASX spokesperson said.