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The
Australian Securities Exchange (ASX) marked a milestone on Thursday with the
launch of the country’s first Bitcoin (BTC) exchange-traded fund (ETF) on its
main stock market. The VanEck Bitcoin ETF (VBTC)
debuted with approximately AUD990,000 ($660,429) in assets, signaling a growing
appetite among investors for cryptocurrency-related products.
Australia’s Main Stock
Exchange Welcomes First Bitcoin ETF
The
launch comes after more than three years of discussions between fund
managers and the ASX, as the exchange operator sought to ensure proper
safeguards were in place. While the VanEck Bitcoin ETF will not directly own Bitcoin,
it will invest in the US-listed VanEck Bitcoin Trust (HODL), which
made its debut in January.
The launch
of the VanEck Bitcoin ETF follows a wave of similar products hitting the market
in other countries. In the United States, investors have poured billions of
dollars into cryptocurrency ETFs since several products received regulatory
approval in early 2024. Hong
Kong also joined the trend in April, introducing six cryptocurrency funds,
although investor interest there has been relatively subdued compared to the US.
“The demand
for access to Bitcoin via a listed vehicle traded on ASX has been increasing,
and many of our clients have told us that their clients are already positioned
to have an allocation ready to invest,” said Arian Neiron, CEO and Managing
Director at VanEck Asia Pacific.
The first bitcoin ETF is now available on @ASX.Learn more about the VanEck Bitcoin ETF $VBTC.https://t.co/grfIje1BgF pic.twitter.com/JOyHzb20GN
— VanEck Australia (@vaneck_au) June 19, 2024
While the
VanEck Bitcoin ETF is the first fund of its kind to be listed on the ASX, it is
not the only cryptocurrency-related product available to Australian investors.
The local subsidiary of CBOE Global Markets (CBOE) operates a competitor
exchange that already
hosts several bitcoin ETFs.
Bitcoin,
the world’s largest cryptocurrency by market capitalization, has experienced a
significant resurgence in 2023, with its price nearly tripling since the start
of the year. However, the digital asset’s value has plateaued in recent months
after reaching a peak in March.
As the
VanEck Bitcoin ETF begins trading alongside some of Australia’s most well-known
corporations, such as BHP (BHP) and Commonwealth Bank (CBA), it remains to be
seen how investors will respond to this new investment vehicle and whether it
will pave the way for more cryptocurrency-related products on the ASX in the
future.
The market
for cryptocurrency ETFs is now eagerly awaiting the introduction of the
first-ever physically-backed funds for Ethereum (ETH), the second-largest
digital asset by market capitalization. Although the US SEC accepted
preliminary applications from issuers a month ago, the final approval has
not yet occurred.
This article was written by Damian Chmiel at www.financemagnates.com.
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