Australia’s first bitcoin ETF debuts on ASX

Today marks a significant milestone for cryptocurrency integration into mainstream financial markets in Australia with the launch of the country’s first bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX). VanEck Bitcoin ETF, which started trading with approximately A$990,000 in assets, represents an important development after more than three years of negotiations with ASX operators.

The newly launched fund will not hold bitcoin directly. Instead, it will invest in the US-listed VanEck Bitcoin Trust, which started operating in January this year. This indirect investment approach is also reflected in VanEck’s European operations, where its subsidiary oversees 12 peer cryptocurrency funds.

The launch of the VanEck Bitcoin ETF coincides with a period of renewed investor interest in cryptocurrency-backed ETFs. This renewed interest is attributed in part to the legal approval of several such ETFs in the United States in January, and the subsequent billions of dollars invested in them. In April, Hong Kong launched six cryptocurrency funds, but reaction from investors there has been relatively low.

Demand for cryptocurrency ETFs in Australia rose sharply in March following regulatory approvals in the US. VanEck Australia has reported an increase in inquiries from brokers and financial advisors seeking similar investment products.

While Bitcoin’s price has seen significant growth, nearly tripling since 2023, it has experienced a period of stability after peaking in March.

The VanEck Bitcoin ETF is the first to be listed on the main ASX platform, although bitcoin ETFs are available on a rival exchange operated by CBOE Global Markets’ local subsidiary in Australia. It will be listed here alongside leading Australian companies such as BHP and Commonwealth Bank, signaling further blending of the classical and digital asset markets.

The exchange rate at the time of the fund’s launch was $1 equals 1.4990 Australian dollars.

Reuters contributed to this article.

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