DigitalX recently announced that cryptocurrency exchange Coinbase would serve as the custody partner for its new spot Bitcoin ETF (BTXX). This partnership demonstrates Coinbase’s growing role in supporting the infrastructure for Bitcoin ETFs globally. The DigitalX Bitcoin ETF (BTXX) seeks to provide returns that mirror the performance of Bitcoin by holding BTC long-term without actively buying or selling Bitcoin other than to facilitate redemptions and creation of Bitcoin interests. The ETF was launched on July 12 after receiving approval from the Australian Securities Exchange (ASX) on July 9.
Coinbase has become a key partner and custody provider for multiple spot Bitcoin ETFs in the United States and newly approved Ether ETFs. A custodian is a certified company responsible for holding digital assets on behalf of companies or individuals, securing billions of dollars worth of crypto that the ETF owns. This partnership with DigitalX showcases the increasing importance of custodians in the growth of the ETF market. DigitalX Bitcoin ETF (BTXX) is the latest Australian spot Bitcoin ETF to launch, following the footsteps of the country’s first Bitcoin ETF, VanEck Bitcoin ETF (VBTC), which was launched on the ASX in June.
Australia has witnessed significant growth in crypto ownership and adoption in recent years, with a crypto ownership rate of 17%, higher than the global average of 15%. Independent research indicates that over 1.1 million Australians own at least one form of cryptocurrency. The Australian Tax Office reported that around 600,000 Australians have declared crypto holdings in their tax returns. A survey conducted by the Australian Securities and Investments Commission (ASIC) in 2022 revealed cryptocurrencies as the second most popular investment product among Australians, only behind domestic shares. Despite the growing interest and adoption, the regulatory environment for cryptocurrencies in Australia remains challenging.
In Australia, the regulatory climate for cryptocurrencies remains hostile despite the increasing interest and adoption of digital assets. Binance Australia faced challenges in May 2023 when it had to suspend Australian dollar deposits and withdrawals due to third-party service provider issues. The situation escalated in July 2023 when ASIC conducted searches at Binance Australia’s offices. Despite the hurdles, the crypto ownership rate in Australia surpasses the global average, with over 1.1 million Australians owning at least one form of cryptocurrency. The country’s first Bitcoin ETF, VanEck Bitcoin ETF (VBTC), was launched in June, followed by DigitalX Bitcoin ETF (BTXX) in July with Coinbase as the custody provider.
The partnership between DigitalX and Coinbase for the new DigitalX Bitcoin ETF (BTXX) highlights Coinbase’s growing role in supporting the infrastructure for Bitcoin ETFs globally. The ETF seeks to provide returns that track the performance of Bitcoin by holding BTC long-term without actively buying or selling Bitcoin other than for redemptions and creation of Bitcoin interests. Coinbase has become a key custodian for multiple spot Bitcoin ETFs in the United States and newly approved Ether ETFs, demonstrating its significance in securing digital assets for ETFs. Despite regulatory challenges in Australia, the country has seen a substantial increase in crypto ownership and adoption, with over 1.1 million Australians owning at least one form of cryptocurrency.
