Category: Australia

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Australia Bitcoin Crypto News ETFs Ethereum

Australian Crypto ETF Competition Heats Up, Two More Listings Set to Launch

Within days of news that Australians will soon receive the country’s first Bitcoin exchange traded fund (ETF), a slew of competitors look set to follow suit by launching their own own crypto ETFs.

Another Bitcoin ETF and the First Australian Ethereum ETF

According to a press release, 21Shares AG (“21Shares”), a Swiss-based issuer of crypto exchange traded products (ETPs), and Australian ETF provider ETF Securities have jointly launched two funds to provide direct access to bitcoin and ethereum respectively:

  1. 21Shares Bitcoin ETF (EBTC)
  2. 21Shares Ethereum ETF (EETH)

Both EBTC and EETH are due to list on April 27 on Australia’s secondary public exchange, the Cboe (formerly Chi-X), with EBTC tracking the price of bitcoin and EETH tracking the price of ethereum, both in Australian dollars. Much like Cosmos Asset Management bitcoin ETF (CBTC), whose bitcoin will be held by Gemini, both of 21 Shares’ funds have opted for an offshore custodian in the form of Coinbase, who will hold the assets in cold storage.

While 21 Shares claims that both of its products are a first in Australia, sticklers for detail may wish to point out that EBTC is in fact tied for first with CBTC, as both are scheduled to go live April 27.

In describing the commercial basis for its imminent listings, ETF Securities Australia executive chairman, Graham Tuckwell, said:

The products give investors a way of trading cryptocurrency in a tightly regulated environment, without the need to establish and maintain their own bitcoin or ethereum wallets, or manage the risks.

Graham Tuckwell, executive chairman, ETF Securities Australia

Biggest Capital Market Gets Left Behind

Shortly after news that Australia was going full steam ahead with crypto ETFs, a representative of global ETF provider VanEck described the US regulator’s conservative stance on listing a bitcoin ETF as “a big loss for investors”. And at present, there doesn’t appear to be an end in sight.

Last year, Crypto News Australia reported that there were more than 34 applications outstanding in the US, with “market manipulation” being one of the more frequently cited concerns.

It goes without saying that there are plenty of variables potentially holding up ETFs in the US – whether financial, political, or otherwise driven by “investor protection”. Whatever the case may be, it’s evident that as Australia becomes the eighth nation to launch a bitcoin and ethereum ETF, the world’s most developed capital market is getting left behind:

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Australia Binance Blockchain BNB Crypto News Play to Earn Solana Tokens

Move-To-Earn Token STEPN Has Soared 217x in 2022  

Active types can now get paid to exercise and breathe in the fresh outdoor air with new Australian fitness app STEPN – an NFT-based play-to-move Web3 crypto “game” powered by the Solana blockchain.

Following in the footsteps of Genopets – the first move-to-earn NFT crypto game developed on Solana – STEPN is basically a mash-up of Apple’s step-counting Health app with Axie Infinity-style play-to-earn (P2E) tokenomics.

With over half a million downloads so far on Android alone, STEPN has taken off and so has its governance token, $GMT.

STEPN’s Green Metaverse Token (GMT) has sprinted upwards, increasing five-fold in value over the past month, from US$0.65 to an all-time high of US$3.79. $GMT is the token required for making upgrades to the App’s in-game NFT virtual sneakers. GMT’s market cap is now over US$2 billion and the token is currently ranked #60.


STEPN price chart (GMT). Source: CoinGecko.com

The most recent 26 percent spike came after STEPN announced a partnership with Japanese sports apparel giant Asics on April 18 via Twitter, launching a sneaker sale on the Binance NFT marketplace. Selected subscribers will be able to purchase the first STEPN sneakers on the BNB Chain version of the game:

Earn Crypto Exercising Outside

Users can earn crypto by walking or running with the STEPN App. The app tracks movement via your phone’s GPS and rewards are paid in STEPN’s game token: Green Satoshi Token (GST), which can be traded for USD Coin (USDC) or Solana (SOL).

Players begin by choosing a fitness level that suits their goals, which also determines how many tokens can be earned using the app. The four tiers are divided by different types of virtual sneakers: walker, jogger, runner or trainer. STEPN sneaker NFTs can be found and purchased from the in-app marketplace. Check the stepn.com website for full instructions on how to play.

Since the game has taken off, the price to get started playing has elevated accordingly. Currently the floor price for a pair of sneakers is 13.67 SOL (US$1,400+). Participants in the upcoming STEPN Shoebox sale on Binance will be offered mystery boxes containing a pair of NFT Sneakers of random quality and type, for 0.5 BNB (US$210).

STEPN plans to implement a sneaker-rental feature, coming soon to combat the high cost to entry.

How to Start STEPN

  1. Download the app from the App store (available for Android and Apple) and log in with your email address and verification code.
  2. Get verified. Join the official Discord and Telegram channels and get your activation code to enter the app on your phone. Note: due to popular demand, the development team is only releasing 1000 activation codes per day via Discord and 1000 per day via Telegram. You have to be quick, as codes refresh at midnight AEDT. You can also follow @Stepnofficial on Twitter for more activation code releases.
  3. Link your Solana wallet in the STEPN app and purchase your first pair of virtual sneakers from the STEPN marketplace. Sneakers can be customised and enhanced to increase token rewards.

STEPN buzz continues to gain traction amid rumours of further upcoming partnership announcements with other big shoe brands, including Nike and Adidas. Since the STEPN token sale in March, the app is off to a flying start, but it’s a marathon, not a sprint. Whether the move-to-earn model can prove sustainable over time will be the real test, but for now STEPN is showing no signs of slowing down.

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Australia Banking Scams Social media

Commonwealth Bank Issues Scam Alert Over False Crypto Platform Partnership Report

The Commonwealth Bank of Australia (CBA) issued a scam alert this week to notify the public about a false article circulating on social media sites such as Facebook that claims the bank has partnered with a crypto trading platform. 

CBA emphasises that the claims made in the story are “totally false and untrue”.

The fake story purports to be from the Australian Broadcasting Corporation (ABC) and is designed to exploit people’s trust in, and familiarity with, CBA’s brand and convince them to click through to the scammer’s website. Once on the scammer’s website, users are asked to enter personal information and transfer money.

CBA encourages anyone who receives the scam article through any channel – be it social media, email or text message – not to respond or click on any associated links.

In addition to warning its customers directly, the CBA has reported the scam to all relevant authorities and has asked social media sites to remove the story from their platforms.

CBA’s Genuine Interest in Crypto May Confuse Readers

The scammers may have chosen to use the CBA brand in their fake news story partly because the bank has been particularly enthusiastic about crypto of late.

Last month, CBA said it intended to invest heavily in crypto-related services and just weeks ago its crypto trading app, the first offered by an Australian bank, was delayed due to regulatory hurdles following a successful beta.

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Australia Blockchain Crypto News The Sandbox

Sandbox Creator Buys a Major Stake in Australian Digital Agency ‘Be Media’

Australian digital marketing agency ‘Be Media’ has sold a significant stake in the company to Animoca Brands, the crypto investment giant behind the Sandbox. Be Media is said to be already filling positions for blockchain-based development:

Hong Kong-based Animoca Brands now has a particularly large stake in the Perth-based digital marketing agency. This comes as the company pivots towards crypto after prioritising the provision of Web2 companies for its digital strategies.

Be Media Stake Part of Animoca Expansion Plan

Animoca appears to have purchased its stake as part of its incursion into Australia with aspirations of inducting more companies into Web3. Although Be Media is not strictly crypto-related, the agency makes a good starting point for Animoca’s expansion plan. Be Media has already begun “aggressive hiring” for project management and blockchain-based development positions.

Be Media founder and CEO Jordan Fogarty will retain his current role and a minor stake in the company. Fogarty is reportedly enthusiastic about the pairing and “honoured” to be a part of the introduction of Web3 to local companies.

High Performing Sales

The Sandbox’s token SAND has performed well since its release, hitting an all-time high in November 2021. Animoca announced its intention to release Metaverse Alpha the following month, which had a knock-on effect on token sales. The play-to-earn game hosted the event for just a month.

More recently, NFT gaming platform Balthazar raised US$3 million through an Animoca Brands token sale. The sale valued the DAO at US$30 million and elevated Balthazar to its status as one of the leading platforms in the metaverse.

Animoca has also partnered with the Australian Football League to mint its new NFT collection.

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Australia Crypto News Metaverse NFTs Sports

Fans Push Back as AFL Launches NFT Marketplace

In the same week that the Australian Football League (AFL) cracked down on players dissenting the on-field decisions of umpires, fans of the indigenous code have registered their own disapproval of the league’s recent move into the NFT space.

Earlier this month, the AFL announced a five-year partnership with Hong Kong-based Animoca Brands to bring both the men’s and women’s leagues into the metaverse. In a unique revenue-distribution deal, players stand to receive 20 percent of the spoils from the sale of NFTs associated with the sport, Australia’s most popular football code in terms of supporter numbers.

NFT Fatigue Seeps into Sports

Star English Premier League team Liverpool FC launched its own NFT collection earlier this month. It was a spectacular failure, with only 6 percent of the offering sold.

Providing further evidence of growing fatigue within the NFT space, AFL supporters have greeted news of the code’s upcoming NFT mint with indifference and derision, if not outright hostility:

A Twitter war of sorts has been declared, with some punters going as far as to express their “embarrassment” on behalf of the AFL’s dalliance with NFTs:

One disgruntled punter accused the “suits” within the AFL of ruining the code:

Too Much, Too Soon?

Perhaps the AFL’s deeper engagement with crypto is happening all too quickly for some supporters of the code. In January this year, the league secured a major sponsorship deal with Crypto.com, worth A$25 million over five years. It’s one of the biggest sponsorships of any kind in Australian sport, eclipsing the AFL’s partnership with major sponsor Toyota, worth A$18.5 million.

Several AFL clubs – including the Sydney Swans, Western Bulldogs and reigning premier the Melbourne Demons – now have direct sponsorship deals involving cryptocurrency companies other than Crypto.com. Late last year, Australian digital assets exchange Swyftx entered a major two-year partnership with the Brisbane Lions.

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Australia Bitcoin Crypto News ETFs

Australia’s First Bitcoin ETF Gets Green Light for Imminent Launch

According to a report by the Australian Financial Review, the long-awaited Australian bitcoin exchange traded fund (ETF) has been given the go-ahead by regulators and may be open for trading within a week on the Cboe equities trading venue:

Bitcoin ETF Approved … Finally

As reported by Crypto News Australia last week, one of the major obstacles holding up approval of a local spot-based bitcoin ETF was the high margin requirements required of ETF providers – 42 percent against each trade.

ASX Clear, Australia’s equity clearing house, has now revealed that of the 35 applicants, only four were willing to stump up the tough margin requirements needed to cover the settlement risks of a bitcoin ETF.

We are now at our minimum number of clearing participants and that means we are good to go.

Hamish Treleaven, ASX chief risk officer

ASX chief risk officer Hamish Treleaven is expected to issue a notice today giving brokers, clearers, market makers and investors sufficient time to digest the news. Estimates vary, but some speculate that over A$1 billion could flow into Australia’s first bitcoin ETF – the Cosmos Asset Management bitcoin ETF (CBTC) – which may begin trading as soon as April 27.

Just the Beginning

Rather than having local bitcoin custodial services, CBTC has opted for the Winklevoss-powered exchange, Gemini:

Furthermore, as one half of the Winklevoss twins notes, the product is essentially a “fund of funds” as it invests in Canada’s Purpose Bitcoin ETF:

Expect the Floodgates to Open

Risk-averse regulators have treaded cautiously to date as they wade into uncharted territory, perhaps explaining why it has taken upwards of two years for a bitcoin ETF to be approved. Now that the mould has been broken, expect a slew of competitors to follow suit, each with its own custody and fee structure.

Although unconfirmed, it’s been reported that other fund managers are already working on a bitcoin ETF, including ETF Securities, VanEck Australia, BetaShares and Monochrome Asset Management.

While individuals in search of financial self-sovereignty may scoff at the notion of a bitcoin ETF – not your keys, not your coins – for many institutional investors, it is precisely the investor product (and green light) they were looking for:

The approval of the CBTC is a vote of confidence in the asset. Investment professionals wanting exposure will likely view the approval as reducing their career risk.

CBTC opens the door to Australian asset managers and superannuation funds that have sat on the sidelines pending a local regulatory stamp of approval. Now they’ve got it, it will be fascinating to see whether the uptake is as strong as predicted.

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Australia Crypto News Regulation

Australian Blockchain Start-Up ‘Lygon’ Secures $12.75 Million from Major Banks

‘Lygon‘, a blockchain start-up created as a joint venture between three of Australia’s ‘Big Four’ banks, IBM, and retail conglomerate the Scentre Group, has secured an additional A$12.75 million in its latest round of funding.

Lygon, the creator of the world’s first digital bank guarantee, was founded after its corporate partners realised they needed to collaborate to solve a problem that has caused significant inefficiencies over decades: 200-year-old paper bank-based guarantees.

Process Reduced From a Month to a Day

Guarantees are common commercial contracts in which banks vouch that a customer is able to repay a debt, and they are still regularly used in the commercial property industry. Lygon suggests that it has turned the “paper-based, slow and costly” process into digital form and can thus reduce the time it takes to issue a bank guarantee from one month to one day.

According to Lygon chairman Nigel Dobson, “The commercialisation of the Lygon platform represents a significant milestone for blockchain technology in Australia and globally.” He added:

We’ve gone from a proof-of-concept to a newly incorporated company and commercially available platform in two years – at a time when the demand for digital has never been stronger.

Nigel Dobson, chairman, Lygon

Traditional Guarantees Eat Up 80,000 Courier Deliveries and Four Tonnes of Paper Annually

The paper-based nature of guarantees slows down processing, causing logistical problems for companies such as Scentre, and Lygon has estimated that bank guarantees currently require 80,000 courier deliveries each year and use four tonnes of paper.

Based on IBM’s Hyperledger technology, the Lygon innovation will allow ANZ, Westpac and the Commonwealth Bank to store their instruments on one platform that can be accessed by multiple users.

Lygon’s Capital Pushes It into New Sectors

Lygon originally set out to raise A$10 million, but chief executive Justin Amos said it increased the capital target due to higher than expected demand from backers. The extra funding will be used to hire more staff (at least 30 more this year), fund research and development work, and push into new industries such as insurance and environmental, social and governance.

Lygon is also working on digitising rehabilitation bonds, commonly used in the mining sector and designed to ensure government has funds to restore a mine, exploration site or quarry if an operator fails.

According to Amos, “We have a built, fit-for-purpose bank guarantee platform, but our customers are coming to us and saying they want us to do more.” He added:

[The Lygon innovation is] a game-changer from a customer experience perspective. In terms of [traditional] bank guarantees, they were paper-based systems that are not good for anyone. They’re expensive, prone to delay, and there is operational fraud everywhere.

Justin Amos, CEO, Lygon

Australian Banking Industry Needs to Back Blockchain

As interest in cryptocurrencies and blockchain technology surges in Australia and the world over, the crypto community fears that outdated regulations may prevent businesses and investors from getting involved. Recently, the Australian Prudential Authority revealed it was in the final stages of drafting a letter to the country’s financial institutions that will outline its expectations for the future of digital assets.

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Australia Events Metaverse NFTs Sports

Cricket Australia to Launch Official NFTs of Memorable Moments

Taking its first official step into the space, Cricket Australia will launch an official range of NFTs marking some of the most memorable moments in Australian cricket, joining a boom industry which has already recorded US$11.8 billion in trading volume this year.

The NFTs will be available to own and trade under an NFT licensing agreement. Cricket Australia (CA) and the Australian Cricketers Association (ACA) have announced a multi-year partnership with Singapore-based collectibles platform Rario and NFT trading company BlockTrust, which will mint historic incidents in Australian cricket.

Cricket lovers globally can now own and trade NFTs of key events in the sport that took place on Australian soil. According to a tweet by Rario, the partnership will “give cricket lovers the opportunity to own a part of the sport they love and indulge in cricket NFT-based games in the Rario metaverse”:

Relive Australian Cricket History

As with all sports memorabilia, the value of NFTs is determined by demand, and there is certainly demand in a cricket-obsessed nation such as Australia. This partnership means that unique, digital versions of moments such as Steve Waugh’s Ashes hundred on the last ball of the day at the Sydney Cricket Ground in 2003, Peter Siddle’s Ashes hat-trick in 2010, and Ellyse Perry’s double century in 2017 will now be available to own and trade.

Fans of the sport are understandably excited by the news:

Environmental Concerns Bowled Out

NFTs have long been criticised for their associated high carbon emissions, but in a joint statement, Rario, CA and the ACA say they are “committed to a partnership that [will see] NFTs produced in a sustainable manner”. The cricket NFTs will make use of the Ethereum side-chain Polygon, which they say “translates to more eco-friendliness and considerably fewer carbon emissions”.

Cricket Australia CEO Nick Hockley said in a statement:

We are excited to step into the metaverse with our partners Rario, BlockTrust and the ACA for this historic deal, which will open up huge opportunities for innovation and fan engagement. The game’s deep connection with its past, the passion of our fans and the appeal of Australian cricketers to a global audience means the incorporation of NFTs is another way that fans can engage and be part of the sport. This is just the start and I have no doubt we will see enormous benefit for fans, players and the sport itself as we build this exciting partnership.

Nick Hockley, CEO, Cricket Australia

Todd Greenberg, CEO of the ACA, issued his own statement:

Once you begin to learn about NFTs you soon understand [that] the engagement possibilities between past and present players [and] fans are huge. We all look forward to bringing this program to life in the coming months with new and innovative concepts.

Todd Greenberg, CEO, Australian Cricketers Association

Cricket NFTs Are No New Idea

Although this collection of NFTs will capture memorable moments in Australian cricket history, it is not the first time the sport has entered the NFT space. Last year, Crypto News Australia reported how Aussie legend Adam Gilchrist would digitise cricket moments to NFTs. The world’s first cricket-based NFTs were also launched last year ahead of the T20 World Cup.

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Australia Bitcoin ETFs Investing Regulation

Australian Crypto ETF Stalled by High Collateral Requirements

The creation of Australian-based spot Bitcoin ETFs is being hampered by what some fund managers regard as excessively high collateral requirements being imposed by traditional clearing houses. 

High collateral obligations mean many clearing participants are reluctant to agree to trade Bitcoin ETFs, with only three out of 35 acceding to the requirements. The ASX’s internal, independent clearing house, ASX Clear, requires at least four to get involved before Bitcoin ETFs can be made available to investors.

Spot Bitcoin ETFs are backed by actual Bitcoin, as opposed to Bitcoin Futures ETFs which are backed by Bitcoin Futures contracts. Generally, crypto futures ETFs have faced lower regulatory hurdles and are therefore currently more common, but spot ETFs have several advantages that make them more attractive to many investors.

High Collateral Costs Intended to Offset Risk

ASX Clear sets collateral requirements for different investment products based on risk. Following an assessment of the risks and volatility of Bitcoin, ASX Clear decided that a Bitcoin ETF would require a 42 percent margin to be lodged against each trade, which is very high compared to other investment products.

To get a sense of just how high these collateral requirements are, the BetaShares Crypto Innovators ETF, which invests not in cryptocurrencies but in 34 companies involved in the digital asset industry, faces collateral requirements of under 15 percent.

Speaking to the Australian Financial Review, the ASX’s chief risk officer Hamish Treleaven explained the high requirements:

In all of our decision-making on this we have remained focused on appropriate risk management for the clearing house – that’s our regulatory obligation.

Hamish Treleaven, chief risk officer, Australian Securities Exchange

Lucrative Prize Awaits First Bitcoin ETF

There are currently several fund managers racing to launch the first Australian Bitcoin ETF, including Betashares, Cosmos Assets Management, ETF Securities, Monochrome Asset Management and VanEck Australia. 

ETF Securities announced its planned launch of Australia’s first spot Bitcoin ETF last year, but like those of all such products, this has been delayed due to regulatory issues.

Many in the industry believe the first fund to launch could attract over A$1 billion of capital, with some predicting over A$100 million could pour in on launch day alone – more than double the funds BetaShares Crypto Innovators ETF attracted on its first day of trade last November.

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Australia CBDCs Crypto News Investing Regulation Trading

Australia and Singapore Create New FinTech Bridge to Grow Digital Finance

The Monetary Authority of Singapore (MAS) and the Australian Treasury have come together to sign the Australia-Singapore FinTech Bridge Agreement, which an MAS media release describes as a measure to strengthen cooperation between both countries’ FinTech ecosystems:

Building a FinTech Bridge

The agreement will see two industry regulators facilitating trade and investment in their respective sectors. These regulators will also develop ties among industry groups, policy officials and other regulators, with further plans to develop FinTech companies in each other’s markets to create new opportunities and minimise entry barriers.

https://www.lawyersweekly.com.au/biglaw/24799-investment-groups-in-singapore-and-australia-acquire-figtree-grove-shopping-centre
MAS and the Australian Treasury have flagged a FinTech agreement.

The Bridge Agreement is likely to explore joint innovation projects in other emerging areas including blockchain, sustainable finance, data portability, and cross-border data connectivity. However, the first step for the partnership is to develop a framework for bilateral collaboration and joint projects.

Australian CBDC Partnerships

The agreement comes less than a month after the central banks of Australia, Malaysia, South Africa, Singapore, and the Bank for International settlements (BIS) announced plans to explore multi-CBDC platforms.

On March 25, BIS released a report announcing the results of two multi-CBDC platforms it had been working on, finding that while these platforms were technically viable, they faced governance, coordination, and jurisdictional challenges. Opportunities are available, although more exploration into the application of these platforms is required.

To learn more about CBDCs, Crypto News Australia has put together a guide on CBDCs and stablecoins.