The head of the ASX notes that the Australian stock market aims to see more investment opportunities in the crypto asset class come to the exchange.
As the crypto sector continues to expand, more businesses and companies tied to the crypto ecosystem are expected to seek listings on the Australian Securities Exchange (ASX), says ASX CEO Dominic Stevens.
Stevens believes cryptocurrencies will form a larger part of the stock market’s future offerings.
In addition to listing crypto-focused companies such as Block (formerly Square) and exchange-traded funds (ETFs), the ASX is looking at spot ETFs for major cryptocurrencies like Bitcoin and Ethereum, the Sydney Morning Herald reported.
“I think that as the industry matures, you will see more Square-like companies listing in the future, but we protect the quality of companies on our exchange, and it is an area that is moving very quickly,” he commented.
Stevens, who announced he will step down from the exchange later this year, also said there is still significant work to be done across the broader crypto space regarding consumer protection.
While many people have created substantial wealth within the sector, persistent issues such as hacks and other security breaches continue to challenge the crypto ecosystem, he noted.
Crypto companies offer diversification
The ASX chief said technology companies will make up a large portion of the index, and he expects a rise in listings from crypto companies and SPACs.
He added that the ASX is well positioned and likely to benefit from an influx of companies as the technology sector becomes an even larger part of global equity markets.
The move is part of the exchange’s broader diversification strategy as it looks to competing markets in the US and Asia. According to Stevens, it would be a mistake not to focus on the growing crypto-related ecosystem given its potential expansion in the coming years.
On January 20, Jack Dorsey’s Block debuted on the ASX after merging with Afterpay. Observers noted the listing could open the door for many more companies built on blockchain technology.