First VanEck Bitcoin ETF To List On Australia’s ASX

US Bitcoin ETFs have amassed $58 billion this year; in the midst of worldwide demand for Bitcoin ETFs, VanEck Bitcoin ETF will launch on ASX.

TakeAway Points:

  • VanEck Bitcoin ETF will be the first direct Bitcoin ETF to list on the main stock market when it lists on Australia’s ASX.
  • This year, US Bitcoin ETFs gained $58 billion, with products from Fidelity and BlackRock setting the pace.
  • A rising number of regulated Bitcoin investment vehicles are being considered by Sydney-based BetaShares and DigitalX, who are both planning listings.

VanEck Bitcoin ETF Debuts in Australia

Australia is set to witness its first exchange-traded fund (ETF) investing directly in Bitcoin, marking a significant milestone in the country’s financial markets. The VanEck Bitcoin ETF will be listed on the Australian Securities Exchange (ASX) on Thursday, as confirmed by VanEck in a press release. This move follows the successful launch of similar products in the US and Hong Kong, signalling a growing global acceptance of Bitcoin as an investment asset.

Arian Neiron, CEO for VanEck in the Asia-Pacific region, emphasized the importance of this development, stating, “We recognize Bitcoin is an emerging asset class that many advisers and investors want to access.” He added that the ETF offers exposure to Bitcoin “using a regulated, transparent, and familiar investment vehicle.”

Global Environment for Bitcoin ETFs

The introduction of the VanEck Bitcoin ETF in Australia comes on the heels of substantial interest in Bitcoin ETFs in other major markets. In the US, Bitcoin ETFs have amassed $58 billion this year, with contributions from financial giants like BlackRock Inc. and Fidelity Investments, alongside VanEck. Meanwhile, Hong Kong permitted spot ETFs for Bitcoin and Ether in April, although these have attracted less interest compared to their US counterparts.

In Australia, other local players such as BetaShares Holdings Pty. Ltd. and DigitalX Ltd. are also preparing to list Bitcoin ETFs on the main Australian board. This follows an initial round of Bitcoin ETFs launched two years ago on CBOE Australia, the country’s junior bourse, which had mixed success. However, the higher profile of the ASX and the recent rally in Bitcoin prices are expected to drive greater traction for these new listings.

Dynamics of the Bitcoin Market

Despite the positive developments in the ETF space, Bitcoin’s market performance has been lackluster recently. Bitcoin wavered near $67,000 early Friday, struggling to break out of a sideways trading channel. The largest cryptocurrency declined 1.3% over the past 24 hours, while the broader crypto market was down nearly 1%, as measured by the CoinDesk 20 Index (CD20).

Investor confidence appears to be waning, as evidenced by the $226 million of net outflows from US-listed spot Bitcoin ETFs on Thursday. Fidelity’s FBTC led the outflows, while only BlackRock’s IBIT recorded minor inflows. This trend suggests that investors are becoming cautious amid the current market conditions.

Market Comparisons

Bitcoin’s performance this quarter has lagged behind traditional assets such as stocks and bonds. From the start of April through mid-June, Bitcoin has shed about 5%, while global equities, fixed income, and commodities have all posted gains. Gold, in particular, has outperformed Bitcoin during this period.

Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, noted that a significant portion of the subscriptions for the new US Bitcoin ETFs might be from existing Bitcoin holders.

“In other words, not all the ETF inflows represent new money coming into the market, and only new money will move the price,” she wrote.

JPMorgan Chase & Co. strategists, led by Nikolaos Panigirtzoglou, also highlighted the nature of the demand for these products. They estimated that this year’s net flow to crypto, including ETFs, venture capital fundraising, and CME Group futures, stands at $12 billion, significantly lower than the $45 billion in 2021 and $40 billion in 2022. The strategists expressed skepticism about the current pace of inflows continuing for the rest of the year.

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