Australia’s ASX has given the green light to the country’s first spot Bitcoin ETF by VanEck, providing investors with direct access to Bitcoin through a US-listed trust. This approval marks a significant achievement in Australia’s crypto market.
VanEck, a well-known ETF issuer, is scheduled to launch Australia’s inaugural spot Bitcoin ETF on June 20th. This ETF will function as a feeder fund, investing in the VanEck Bitcoin Trust (HODL), an ETF listed on the Cboe BZX Exchange in the US. VanEck has emphasized that their Bitcoin ETF will be the most cost-effective option for Australian investors looking to invest in cryptocurrency.
Arian Neiron, VanEck’s CEO for the Asia-Pacific region, highlighted the growing demand for Bitcoin exposure among Australian investors. He mentioned that the VBTC ETF would simplify access to Bitcoin by managing the complexities of acquiring, storing, and securing digital assets. This move aims to offer a regulated and transparent investment vehicle for advisers and investors seeking Bitcoin exposure.
Other players in Australia’s Bitcoin ETF market, such as BetaShares Holdings Pty and DigitalX Ltd., are also gearing up to introduce their spot Bitcoin and Ethereum (ETH) funds. BetaShares is planning to launch spot Ethereum and Bitcoin ETF funds to meet the increasing demand for diversified digital asset investments.
In Australia, approval for ETFs requires the green light from both the Australian Securities & Investments Commission (ASIC) and the exchange where the product will be listed. VanEck, having secured approval for spot Bitcoin ETFs in the US and Europe, aims to leverage its global expertise to cater to Australian investors.
Recent data from CoinShares revealed significant outflows from digital asset investment products, with about $600 million withdrawn, primarily from Bitcoin. Despite this, altcoins like Ethereum, Lido (LDO), and XRP saw notable inflows, indicating that investors are seeking diversification beyond Bitcoin amid market volatility.
Currently, Bitcoin is trading at $65,174, down 1% in the past 24 hours and nearly 6% in the past seven days. The approval of the VBTC ETF on the ASX is expected to have a significant impact on the market, potentially influencing Bitcoin’s price and investor interest.