June 20 2024: For the first time, a bitcoin exchange-traded fund (ETF) launched on Australia’s primary stock market on Thursday, as fund managers introduce products to meet the demand of investors returning to cryptocurrency markets following a price boom.
The VanEck Bitcoin ETF debuted on the Australian Securities Exchange with approximately A$990,000 ($660,429) in assets, marking the end of over three years of negotiations with ASX.
This fund will not hold bitcoin directly but will invest in the U.S.-listed VanEck Bitcoin Trust, which launched in January. VanEck’s European subsidiary manages 12 similar cryptocurrency funds.
In the U.S., investors have invested billions of dollars into cryptocurrency ETFs since regulators approved several products in January. Hong Kong followed in April with the launch of six funds, though interest there has been more subdued.
VanEck Australia noted in March that U.S. regulatory approval spurred a surge in requests from brokers and financial advisers for similar products.
The price of bitcoin has nearly tripled since 2023, though prices have plateaued since peaking in March.
In Australia, a competitor exchange operated by CBOE Global Markets’ local subsidiary already hosts several bitcoin ETFs. However, the VanEck Bitcoin ETF is the first to launch on the main exchange, sharing the tickertape with some of the country’s most renowned corporations, such as BHP and Commonwealth Bank.
($1 = 1.4990 Australian dollars)
