For the first time, an exchange-traded fund (ETF) investing in Bitcoin has been listed on Australia’s main stock market, adding to a wave of similar launches in the US and Hong Kong this year. The VanEck Bitcoin ETF debuted Thursday on the ASX Ltd. exchange with a seed investment of approximately A$985,000 ($657,000). This new product is a feeder fund for the $647 million VanEck Bitcoin Trust in the US.
Global Trend of Bitcoin ETFs
The launch of Bitcoin ETFs has been a significant trend in global markets this year. In the US, Bitcoin ETFs began trading in January and quickly gained popularity, accumulating $56 billion in assets. Hong Kong followed suit in April, allowing spot ETFs for Bitcoin and Ether, although these have attracted less interest compared to their US counterparts.
Australia’s Growing Crypto ETF Market
Australia is now joining the trend with the VanEck Bitcoin ETF’s introduction. Sydney-based BetaShares Holdings Pty and DigitalX Ltd., another local firm, are also preparing to list on the main Australian board. However, a spokesperson for the ASX has confirmed that VanEck is currently the only applicant that has received approval, with ongoing engagement with other issuers.
In addition to the main board, crypto ETFs are already available on CBOE Australia, the country’s other bourse. These include Global X 21Shares Bitcoin, Global X 21Shares Ethereum, and Monochrome Bitcoin, which collectively hold assets of about $90 million.
Market Potential in the Asia-Pacific Region
The potential for virtual-asset ETFs in the Asia-Pacific region is significant. Experts predict that the market could reach more than $3 billion in the coming years, with growth expected to be roughly evenly split between Australia, Hong Kong, and South Korea, once the latter permits crypto funds to list.
Bitcoin’s Performance in 2023
Bitcoin has experienced a substantial rally in 2023, roughly quadrupling in value from the start of the year. This resurgence follows a deep bear market, with Bitcoin reaching a record high of $73,798 in March before experiencing a slight decline and a stall in momentum.
