AN exchange-traded fund (ETF) investing in Bitcoin is listing on Australia's main stock market for the first time, joining a wave of similar launches this year in the US and Hong Kong.
The VanEck Bitcoin ETF debuted on the ASX-operated exchange on Thursday (June 20) with an initial investment of approximately A$985,000 (S$887,468). The product is a feeder fund for the $647 million VanEck Bitcoin Trust in the United States.
US Bitcoin ETFs went live in January and took Wall Street by storm, amassing $56 billion in assets to date. Hong Kong allowed spot ETFs for Bitcoin and Ether in April, which have drawn a fraction of the interest from US vehicles.
Sydney-based BetaShares Holdings and DigitalX, another local player, are also preparing to list on the main Australian board. An ASX spokesperson has said VanEck is the only green-lit applicant so far and engagement is ongoing with other issuers.
Crypto ETFs are now available on CBOE Australia, the country's other exchange. The latter (Global X 21Shares Bitcoin, Global X 21Shares Ethereum and Monochrome Bitcoin) have combined assets of around $90 million.
"The Asia-Pacific region's potential for virtual asset ETFs can reach more than $3 billion in the coming years," Rebecca Sin, senior ETF analyst at Bloomberg Intelligence, wrote in a note. That would be split roughly equally between Australia, Hong Kong and South Korea once the latter finally allows crypto funds to list there, she added.
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Bitcoin has roughly quadrupled since the beginning of 2023, in a comeback from a deep bear market. The rally reached an all-time high of $73,798 in March, but the token pulled back and momentum has stalled lately. BLOOMBERG
