October 19, 2021 ProShares Bitcoin Strategy ETF (BITO) launched On the New York Stock Exchange.On the first day of listing, the inflow of exchange-traded funds (ETF) was close to USD 1 billion natural volume And, within 24 hours, Bitcoin (Bitcoin) The dollar price of itself will hit a record high. This is one week after the U.S. Securities and Exchange Commission allowed the ETF application to expire, which actually allows the product to move forward.

This marks an important step taken by the United States, but it also affects other markets around the world. If BITO continues to be as popular as the first day implies, then it may increasingly want to follow suit. ETFs provide exposure to derivatives of Bitcoin futures contracts, not Bitcoin itself. Although purists may find this unpopular, it provides investors with a significant degree of isolation from the inherent volatility of Bitcoin. Other products with similar concepts in other markets may help alleviate concerns that have kept institutional participants away for years.

The success stories of markets like the United States have undoubtedly had a positive impact on the prospects of similar funds around the world, and the involvement of Australian institutions is a boon for Bitcoin and the national economy. More importantly, this provides an opportunity for Australia to take a leading position in financial innovation and fully introduce cryptocurrency into its financial community.

And, in most cases, Australian legislators agreeA recent report issued by the Australian Parliament’s Special Committee on Australia as a Technology and Financial Center puts forward a framework that will level the playing field between Australia and the United States, the United Kingdom and Singapore.

ETF domino effect

With this framework and following the success of Australian fund management company BITO BetaShares is available Its cryptocurrency innovation ETF is listed on the Australian Securities Exchange (ASX) under the ticker symbol CRYP.The fund’s exposure allows investors to Bitwise Crypto Industry Innovator 30 IndexThe index’s core portfolio includes major cryptographic entities such as the well-known cryptocurrency trading platform Coinbase, Bitcoin mining company Riot Blockchain, and Michael Saylor’s business intelligence software company MicroStrategy.

The fund broke the ASX record within 15 minutes of its launch and raised nearly $31.3 million at the end of the opening day.

Essentially, by holding company stocks instead of specific crypto assets such as Bitcoin and Ethereum (Ethereum), BetaShares’ ETF can provide interested customers with a unique opportunity to participate in the booming digital asset market without actually buying any cryptocurrency directly. In fact, BetaShares claims that 85% of its index focuses on companies that have at least 75% of their revenue directly from the crypto market, or have at least 75% of their assets directly held by crypto assets. As Bitcoin matures, this means maximizing long-term returns, but also minimizing the impact of market reversals, which many people think is almost inevitable.

This has the potential to have a transformative impact on the adoption of cryptocurrencies in Australia and wider. The launch of this ETF provides Australian investors and institutions with the first opportunity to come into contact with Bitcoin and in a way that should calm their concerns about volatility. In turn, this will bring greater interest to the Bitcoin economy and should help boost asset prices. More importantly, this will be another example of this type of product, and if you are lucky, it can inspire inspiration in other markets around the world. That being said, Australia does not need to wait for more global adoption, on the contrary, they should be in a leading position.

In a similar move, in Australia’s geographic backyard, New Zealand also launched its first Bitcoin ETF in the form of a new product earlier this month. Call Vault International Bitcoin Fund, or VIBF. VIBF is composed of carefully selected offshore listed Bitcoin funds and other ETFs. This is the first of its kind, which may further encourage regulators that are reviewing the first such ETF in the Australian market.

related: Australian senator pushes the country to become the next cryptocurrency hub

What kind of future?

The first encrypted public ETF is a great development, but it needs to be the first drop in the big bucket. Frankly speaking, given the absolute diversity available, the possibilities of crypto funds and derivatives are almost endless. Even if you don’t get involved in risky small-cap stock projects, there are already hundreds of reputable assets on the market. Just looking at top tokens like Ether and Solana can become the foundation of various fund portfolios, but things become very interesting when you enter blue-chip decentralized financial products.

Liquidity mining, mortgages, and income agriculture all have the potential to significantly increase returns, and if applied properly, these technologies do not need to bring too much risk. For example, the stablecoin liquidity pool reduces the inherent volatility of the cryptocurrency market, while providing a higher rate of return than traditional markets-providing investors with a stable and profitable fixed-income tool. The Australian market is very likely, and becoming one of the first major regions to participate may actually greatly boost the national economy. Increasing the exposure of retail products is also critical to driving the growth of the entire population.

related: Regulators come for stablecoins, but where should they start?

Looking ahead, if Australia can accept this new asset class, it can very realistically see the injection of new capital into its market and wider economy, which is different from what we saw after the US announcement. In addition, it will position Australia as a leader and incentivize other markets to benefit from the huge advantages brought about by the implementation of cryptocurrencies and their derivatives. I hope that those with power will see what is happening and choose to take refuge.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.