Australia’s ASX has given the green light to VanEck’s spot Bitcoin ETF, making it the first of its kind in the country. This development is a major step forward for Australia’s crypto market. VanEck, a leading ETF issuer, is gearing up to launch the country’s inaugural spot Bitcoin ETF on June 20th.
The 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 highlighted that this Bitcoin ETF will offer Australian investors the most cost-effective way to gain exposure to the cryptocurrency.
Arian Neiron, VanEck’s CEO for the Asia-Pacific region, emphasized the growing demand for Bitcoin exposure among Australian investors. Neiron pointed out that the VBTC ETF would simplify the process of accessing Bitcoin by handling the complexities of acquiring, storing, and securing digital assets. This move aims to provide a regulated and transparent investment option for advisers and investors looking to enter the Bitcoin market.
Australia’s Bitcoin ETF arena is heating up, with other players, such as BetaShares Holdings Pty and DigitalX Ltd., also gearing up to introduce their spot Bitcoin and Ethereum funds on the ASX. BetaShares is specifically planning to launch spot Ethereum and Bitcoin ETF funds to cater to the increasing demand for diversified digital asset investments.
In Australia, ETF approvals require the green light from both the Australian Securities & Investments Commission (ASIC) and the exchange where the product will be listed, unlike the US, where the SEC holds significant influence. VanEck, with approvals for spot Bitcoin ETFs in the US and Europe, aims to leverage its global expertise to serve Australian investors effectively. The company is focused on meeting the high standards set after the US approved its first spot Bitcoin ETFs earlier this year.
Recent data from asset manager CoinShares indicates significant outflows from digital asset investment products, totaling around $600 million, the largest since March 2022. Most of these outflows were from Bitcoin, amounting to approximately $621 million. This shift occurred following a hawkish Federal Open Market Committee (FOMC) meeting, prompting investors to reduce their exposure to fixed-income assets.
Despite the outflows from Bitcoin, several altcoins like Ethereum, Lido (LDO), and XRP saw inflows during this period. This trend suggests that investors are seeking diversification beyond Bitcoin amid recent market volatility.
At the time of writing, Bitcoin is trading at $65,174, experiencing a 1% decline in the past 24 hours and nearly a 6% drop 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.