Australia’s ASX Launches First Bitcoin ETF After Years of Preparation

BySamson Ononeme

Jun 20, 2024 , ,
the Australian Securities Exchange listed the VanEck Bitcoin ETF, the country's first bitcoin exchange-traded fund, which debuted with around A$990,000 in assets under management.

Key Insights

  • The Australian Securities Exchange has launched the country’s first bitcoin ETF.
  • The launch comes after over three years of consultations to establish proper safeguards for the crypto investment product.
  • The VanEck Bitcoin ETF debuts with around A$990,000 in assets, amid growing investor demand for cryptocurrency exposure.

SYDNEY (MarketsXplora) – The Australian Securities Exchange (ASX) reached a milestone on Thursday with the listing of the country’s inaugural bitcoin exchange-traded fund (ETF), paving the way for more cryptocurrency investment products in a market seeing growing demand.

The VanEck Bitcoin ETF (VBTC) debuted on the ASX with around A$990,000 ($660,429) in assets under management, after more than three years of consultations between fund managers and the exchange to establish necessary investor safeguards.

While the new fund will not directly hold bitcoin, it will invest in the U.S.-listed VanEck Bitcoin Trust, which only launched in January.

“The appetite for gaining bitcoin exposure via ASX-listed products has been rising, with clients telling us they have allocations ready to deploy,” said Arian Neiron, VanEck’s Asia Pacific CEO.

VanEck’s bitcoin offering is the first cryptocurrency ETF on the ASX’s main board, but rivals already exist on competing exchanges such as the locally listed CBOE Australia.

The listing comes as bitcoin, the world’s largest cryptocurrency, experiences a resurgence in 2023 after roughly tripling in value since January, though it has traded rangebound in recent months following a March peak.

As the VanEck bitcoin ETF begins trading alongside major ASX names like BHP Group (BHP.AX) and Commonwealth Bank of Australia (CBA.AX), focus will turn to how investors respond and whether it opens the door for more crypto-linked products.

The launch in Australia follows hot on the heels of a slew of new cryptocurrency ETFs hitting the U.S. market earlier this year after receiving regulatory clearance.

Hong Kong’s regulator also approved its first batch of crypto funds in April, although appetite has been relatively muted compared to American investors so far.

With several issuers having already filed applications, the next major milestone for the burgeoning global crypto ETF space is likely to be the debut of physically-backed funds for ether, the second-biggest digital asset after bitcoin.

While the U.S. Securities and Exchange Commission gave preliminary approvals last month, final sign-offs are still pending.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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