Australia ‘needs a Greyscale equivalent’ for crypto adoption to take off
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Cryptocurrencies have soared in recent months but one industry executive reckons more needs to happen for adoption in Australia to rise to levels seen in other countries.
Bitcoin and other crypto assets have reached new record highs in recent days as investors and businesses join the bandwagon. Most recently, electric vehicle manufacturer Tesla came to the party last week.
But while this interest was occurring in Australia, it was not to the extent seen in US markets.
DigitalX (ASX:DCC) boss Leigh Travers told Stockhead unlocking institutional investors and Self-Managed Super Funds (SMSFs) would be crucial to crypto adoption in Australia.
“Both of those markets in Australia haven’t seen a lot of adoption compared to global markets,” Travers said.
“Australians typically haven’t had too much involvement into international markets unless it’s managed on their behalf.”
And Travers reckons crypto adoption could surge through funds like his as well as the Greyscale Bitcoin Trust in the US.
These would make investing in cryptocurrencies as easy as any other financial asset.
“Australia hasn’t had a Greyscale equivalent and that’s really prevented a lot of investors coming into the market place because they want to go through the process they usually go through,” he explained.
“Having a familiar vehicle makes a lot more sense and thats what we’re trying to bring to the market.”
Travers noted while Australia was behind the US, investor interest had surged in recent months, noting February had already been a record month with two weeks left to run.
And Travers thinks Australia will catch up eventually.
“I think there’s probably a well-understood investment cycle where Australia is 2-3 years behind US markets and that appears to be playing out in the crypto investment market as well,” he told Stockhead.
In a funds management update to the ASX yesterday, DigitalX noted its direct Bitcoin and digital asset exposure has increased by more than 70 per cent this year.
Investors liked the news, sending the DDC share price up by more than 16 per cent for the day.