Australia Embraces Bitcoin ETFs with ASX’s Latest Listing

Australia’s investment landscape took a significant leap forward with the listing of its first spot-bitcoin (BTC) exchange-traded fund (ETF) on the Australian Securities Exchange (ASX) this Thursday. The launch of the VanEck Bitcoin ETF (VBTC) marks a notable advancement in the country’s crypto investment options, as ASX dominates about 90% of Australia’s equity market.

VBTC experienced a modest gain on its opening day, closing at A$20.06 ($13.4) after a 1% increase from its opening price, with 99,791 shares traded. This ETF operates as a feeder fund, offering exposure to bitcoin by investing in VanEck’s Bitcoin Trust (HODL), which is a U.S.-listed ETF on the Cboe.

The introduction of VBTC on the ASX follows the earlier debut of spot bitcoin products in the U.S. and Hong Kong, underscoring a growing global interest in accessible cryptocurrency investments. However, VBTC is not the pioneer in providing bitcoin exposure to Australian investors. Monochrome Asset Management launched its Monochrome bitcoin ETF (IBTC) on June 4 on Cboe Australia, a smaller competitor of ASX. Unlike VBTC, the IBTC fund holds bitcoin directly and has seen an average daily trading of about 55,000 units with average cash volumes around A$550,000.

The simultaneous operation of these ETFs heralds what the Australian Financial Review describes as a “bitcoin ETF wave” in Australia. This movement reflects a broader acceptance and enthusiasm for cryptocurrency as a legitimate investment vehicle, providing investors with diverse options to engage with digital assets through traditional financial structures.

This expansion into cryptocurrency ETFs by major Australian exchanges signifies a pivotal development in integrating digital currencies within the formal investment sector, potentially paving the way for more widespread adoption and recognition of cryptocurrencies in the financial markets.