By
Steve Muchoki
June 28th, 2024
Andrew Campion, GM of Investment Products and Strategy at ASX, said trading Bitcoin via an ETF on ASX allows Australians to use traditional brokerage accounts, simplifying the investment process for Australians.
The Australian Securities Exchange (ASX), Australia’s dominant stock exchange, took a historic step on Thursday by listing its first spot Bitcoin exchange-traded fund (ETF). The strategic move brings a regulated and familiar investment vehicle to the growing legion of Australian crypto enthusiasts.
VBTC Listing Signals ETF Adoption in Australia
The VanEck Bitcoin ETF, trading under the ticker symbol VBTC, boasts an initial net asset value of around 982,850 AUD ($655,560) as of Wednesday. Unlike directly buying Bitcoin (BTC price data) on cryptocurrency exchanges, VBTC operates as a feeder fund. This means investors gain indirect exposure to Bitcoin by investing in the U.S.-listed VanEck Bitcoin Trust (HODL).
“While it has been possible to trade Bitcoin via crypto exchanges, trading units with exposure to Bitcoin via an ETF…means you’re able to buy and sell those units through a traditional brokerage account,” said Andrew Campion, the general manager of investment products and strategy of ASX.
ASX, handling roughly 80% of Australian equity trades, boasts a domestic market capitalization of $2.6 trillion as of May 2024. This listing marks a significant step towards mainstream acceptance of cryptocurrencies in the Australian financial landscape.
The arrival of VBTC follows a period of anticipation in the Australian financial sector. Earlier this year, reports emerged about ASX preparing to list its first batch of bitcoin ETFs, with applications submitted by several issuers including local players BetaShares and DigitalX.
This development comes on the heels of Cboe Australia, the country’s second-largest stock exchange, approving the Monochrome Bitcoin ETF (IBTC) earlier in June. Notably, 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. Now, Australia’s market is following suit. The 11 U.S. spot Bitcoin funds have gathered 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 move reflects a global shift towards regulated Bitcoin investment options. This trend allows more investors to participate in the cryptocurrency market, potentially increasing market stability and liquidity. Although the future of Bitcoin is uncertain, its acceptance within established financial systems is growing.