Key Points
- The Australian Securities Exchange (ASX) has listed its first Bitcoin ETF.
- The ETF, trading under the ticker symbol VBTC, is a significant step towards mainstream cryptocurrency acceptance in Australia.
The Australian Securities Exchange (ASX), the leading stock exchange in Australia, made a significant move by listing its first Bitcoin exchange-traded fund (ETF).
This development provides a regulated and familiar investment platform for the increasing number of Australian cryptocurrency enthusiasts.
VBTC and ETF Adoption in Australia
The VanEck Bitcoin ETF, with the ticker symbol VBTC, has an initial net asset value of approximately 982,850 AUD ($655,560) as of Wednesday.
VBTC operates differently from directly buying Bitcoin on cryptocurrency exchanges, functioning as a feeder fund.
This implies that investors get indirect Bitcoin exposure by investing in the U.S.-listed VanEck Bitcoin Trust (HODL).
Andrew Campion, the general manager of investment products and strategy of ASX, explained that trading units with exposure to Bitcoin via an ETF allows investors to buy and sell those units through a traditional brokerage account.
ASX, which manages about 80% of Australian equity trades, has a domestic market capitalization of $2.6 trillion as of May 2024.
The listing of VBTC is a major step towards the mainstream acceptance of cryptocurrencies in Australia’s financial sector.
The launch of VBTC was eagerly awaited in the Australian financial industry.
Earlier this year, there were reports that ASX was preparing to list its first batch of Bitcoin ETFs, with applications submitted by several issuers, including local players BetaShares and DigitalX.
This news comes after Cboe Australia, the country’s second-largest stock exchange, approved the Monochrome Bitcoin ETF (IBTC) earlier in June.
It’s worth noting that Australian investors have already had access to spot Bitcoin ETFs through the Global X 21Shares Bitcoin and Ethereum ETFs listed on Cboe in April 2022.
Global Adoption of Bitcoin ETFs
Earlier this year, spot Bitcoin ETFs were successfully launched in the U.S., and now Australia’s market is following suit.
The 11 U.S. spot Bitcoin funds have accumulated a remarkable $56.06 billion in total net assets, surpassing expectations.
In April, Hong Kong also introduced spot exchange-traded funds for Bitcoin and Ether, accumulating over $1.38 billion in total net assets.
The ASX’s decision represents a global shift towards regulated Bitcoin investment options.
This trend enables more investors to participate in the cryptocurrency market, potentially increasing market stability and liquidity.
While the future of Bitcoin remains uncertain, its acceptance within established financial systems is growing.
