Key Points
- ASX approves first spot Bitcoin ETF by VanEck
- VanEck Bitcoin ETF (VBTC) trading begins on June 20
- Growing demand for regulated Bitcoin exposure in Australia
- Other firms like BetaShares preparing similar offerings
In a significant development for cryptocurrency enthusiasts and investors in Australia, the Australian Securities Exchange (ASX) has approved the listing of its first spot Bitcoin exchange-traded fund (ETF). The VanEck Bitcoin ETF (VBTC) will officially begin trading on June 20, marking a pivotal moment for the Australian digital asset market.
VanEck Leads Australia’s Bitcoin ETF Market
VanEck, a prominent asset management firm, will issue the newly approved VBTC. This approval comes after the successful launch of the VanEck Bitcoin Trust (HODL) in the United States earlier this year, reflecting the firm’s growing influence in the cryptocurrency sector.
Arian Neiron, VanEck’s CEO for the Asia-Pacific region, emphasized the increasing demand for Bitcoin exposure among Australian investors. He highlighted that VBTC would offer a regulated and transparent investment vehicle, simplifying the process for advisers and investors to gain access to Bitcoin. This ETF aims to manage the complexities associated with acquiring, storing, and securing digital assets, making it a more accessible option for a broader audience.
Australia’s ASX approves first spot #Bitcoin ETF! 🇦🇺 VanEck’s VBTC launches June 20, offering regulated access to #Bitcoin. #Crypto #ETF pic.twitter.com/WjrIEOf7QE
— AIFinInsights (@aifininsights) June 17, 2024
Rising Interest in Bitcoin and Ethereum ETFs
VanEck’s initiative is part of a broader trend in the Australian market. According to Bloomberg, other firms are also gearing up to introduce their spot Bitcoin and Ethereum (ETH) ETFs. Sydney-based BetaShares Holdings Pty and DigitalX Ltd. are reportedly preparing to list their offerings on the ASX, aiming to cater to the growing demand for diversified digital asset investments.
BetaShares is particularly focused on launching spot Ethereum and Bitcoin ETF funds soon, indicating a competitive and rapidly evolving market landscape. While VBTC is the first spot Bitcoin ETF approved by the ASX, Australia has seen other Bitcoin ETFs introduced in the past two years. The Global X 21 Shares Bitcoin ETF (EBTC) debuted in April 2022, followed by the Monochrome Bitcoin ETF (IBTC) on the Cboe Australia exchange on June 4.
Market Trends and Investor Behavior
In the broader context of digital asset investment, recent data from asset manager CoinShares revealed significant market movements. There were notable outflows of approximately US$600 million from cryptocurrency investment products, the largest since March 22. These outflows were mainly due to a more hawkish stance from the Federal Open Market Committee (FOMC), prompting investors to reduce their exposure to fixed-income assets.
Bitcoin experienced the bulk of these outflows, with US$621 million withdrawn, indicating a cautious sentiment among investors. Despite this, several altcoins such as Ethereum, Lido (LDO), and XRP saw inflows of US$13 million, US$2 million, and US$1 million respectively. This trend suggests that investors are diversifying their portfolios beyond Bitcoin amidst market volatility.
As of now, Bitcoin is trading at $65,400, experiencing a 2% drop in the last 24 hours and nearly 6% over the past week. The largest cryptocurrency is nearing a crucial support level at $65,000, highlighting the dynamic and sometimes volatile nature of the crypto market.
