Bitcoin ETF Hits Australia | BetaShares

Bitcoin ETF Hits Australia

BY Justin Arzadon | 26 April 2022

The price of bitcoin rallied to as high as US$43K but failed to hang on to those gains, following equities lower to end the week.  At the time of writing, bitcoin was trading back below $40K at $39,781.

Ether fell slightly more, down -3.04% vs bitcoin’s -1.52% over the last seven days.

Bitcoin’s market cap fell to $756.8B, while the total crypto market dropped to $1.85T. This left bitcoin’s  market dominance at 40.9%

Price High Low Change from previous week
BTC (in US$) $39,781 $42,839 $38,696 -1.52%
ETH (in US$) $2,951 $3,173 $2,893 -3.04%

Source: CoinMarketCap. As at 24 April, 2022. Past performance is not indicative of future performance. Performance is shown in U.S. dollars and does not take into account any USD/AUD currency movements.

bitcoin price: ohlc

Source: Glassnode. Past performance is not indicative of future performance.

News we are keeping an eye on

Australia’s central clearing house, ASX Clear, confirmed that four market participants have agreed to meet its stringent margin requirements of 42%. This has paved the way for Australia to get its first bitcoin ETF. According to a report by the AFR, three institutional participants and one retail participant have agreed to the clearing house margin requirements. The clearing house will give market participants seven days’ notice of ASX Clear’s regulatory approval, intended to give brokers, clearers, investors and market makers time to prepare for commencement of ETF trading. Trading in the first bitcoin ETF is expected to commence on the CBOE trading venue on April 27, with others soon to follow.1

The Australian Prudential Regulation Authority (APRA)  has detailed a regulatory roadmap for financial entities engaging in activity with crypto-assets. In a letter by Chair, Wayne Byres, released on Thursday, Australia’s prudential regulator set a tentative goal of 2025 for its framework to be effective. APRA plans to conduct consultations on requirements for the financial treatment of crypto-assets, expected to be undertaken in 2023. In the letter, Byers outlined “that APRA therefore expects that all regulated entities will adopt a prudent approach if they are undertaking activities associated with crypto-assets, and ensure that any risks are well understood and well managed before launching material new initiatives.”2

To ensure consistency in its approach, APRA is developing the longer-term prudential framework with other regulators internationally, for crypto-assets and related activities. APRA’s statement comes just days after an announcement was made that Australia is set to get its first bitcoin exchange-traded fund (ETF).

A Non-Fungible Token (NFT) marketplace is officially live in beta on the Nasdaq-listed crypto exchange, Coinbase. The marketplace is officially known as ‘Coinbase NFT’ and for a limited time will not have any transaction fees. The company described the platform as “a peer-to-peer community platform where creators and collectors can come together to discover, display, purchase and create digital assets.”

A recent Coinbase blog stated “anyone can explore the vast collection of NFTs on the Ethereum blockchain. Beta testers can additionally create a Coinbase NFT profile to buy and sell NFTs.” Coinbase first announced its plan to launch an NFT marketplace in October last year.3

On-chain metrics

Bitcoin (BTC): Accumulation Trend Score is an indicator that reflects the relative size of entities that are actively accumulating/distributing their BTC holdings on-chain. A higher score closer to 1 reflects that over the last month, big participants (or a big part of the network) have been accumulating coins, while a lower score closer to 0 reflects that over the last month, big participants have not been accumulating coins or have been selling them. This provides insight into who is behind the price action, whether they are big players who are able to move the price in a sustained way, or small players who usually struggle to sustain positive price action over longer time periods.

Looking at data from on-chain analytics company Glassnode for the month of March and into the first week of April, the score was trending very close to 1, indicating whale accumulation. However, for the rest of April, and as the price failed to hold support around the $43-44K price level, the score has trended lower, currently at a monthly low of 0.2 indicating distribution and signalling that the market is trying to figure out what bitcoin is worth.

bitcoin: accumulation trend scoreSource: Glassnode.

Bitcoin (BTC): Mean Hash Rate shows the average estimated number of hashes per second produced by the miners in the network. The hash rate is an important metric for assessing the strength of a blockchain network – more specifically, its security. The more machines dedicated by honest miners to discovering the next block, the higher the hash rate rises and the harder it becomes for malicious agents to disrupt the network.

Based on the chart, Bitcoin’s hash rate has continued to surge and reach all-time highs. A high hash rate means high processing power is present within the network, which also creates greater security. Given the lull in price action, it is a good sign that there has been no interest lost from miners.

Source: Glassnode.

Altcoin news

Green Satoshi Token (GST), the gaming token for STEP’N, an Australian-founded crypto platform that rewards players for staying fit and active, has surged by nearly 38,000% in less than two months. According to its website, “STEP’N is a web3 lifestyle app with social-fi and game-fi elements where players can earn by walking, jogging or running outdoors.”

The app launched by Adelaide-based Find Satoshi Lab, currently has over 300,000 players and had generated revenues of $26.81 million in Q1/2022 — via the sales of its “NFT Sneaker” whose ownership enables players to earn the gaming token GST.4 Major investors in the app are Binance Labs and include Sequoia Capital, Alameda Research, Folius Ventures, Solana Ventures, 6th Man Ventures, Sfermion and many others.

Most recently, a new partnership with running shoe company ASICS was announced last week to release branded sneaker NFTs.5

Investing in crypto assets or companies servicing crypto-asset markets should be considered very high risk. Exposure to crypto assets involves substantially higher risk when compared to traditional investments due to their speculative nature and the very high volatility of crypto-asset markets.

Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment.

Any investment in crypto assets or crypto- focused companies should only be considered as a very small component of an investor’s overall portfolio.






Off the Chain will be published every Tuesday, and provide the latest news on bitcoin and the rest of the crypto market along with analysis and insights into the world of crypto.

It provides general information only and is not a recommendation to invest in any crypto asset, crypto-focused company or investment product.

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