The race to list the first exchange-traded fund (ETF) to track cryptocurrency prices on the Australian stock market is heating up, with at least three contenders in the process of finalizing regulatory approvals.
Local ETF providers BetaShares, EFT Securities and VanEck are among those seeking first-mover advantage amid hopes that Australian-listed crypto ETFs are well-backed by investors.
The first US-listed Bitcoin ETF began trading in October 2021. It debuted as one of the most-traded ETFs in history, attracting more than $1 billion in the first few days. Technically, you don't have Bitcoin, but Bitcoin futures.
VanEck's Arian Neiron says his firm is interested in bringing crypto ETFs to market.Credit:louis kennerley
Units in ETFs can be bought and sold like shares in listed companies. They track prices from all kinds of markets. Cryptocurrency ETFs are convenient for investors who are otherwise faced with the hassles of owing crypto directly, such as needing to go through an exchange and have passwords and digital wallets to invest in digital assets.
Arian Neiron, CEO and Managing Director of VanEck Asia Pacific, says he's taking his time to get it right. The ETFs that will track Bitcoin and Ether will be liquid and profitable, he says.
โWe would like to be the first, but we want to be the first with the highest quality products, because that is what matters,โ says Neiron.
BetaShares CEO Alex Vynokur says it's a marathon rather than a sprint as his company looks to launch ETFs that track Bitcoin and Ethereum.
As a new asset class, there are a number of hurdles for providers to overcome, Vynokur says.
The Australian Securities and Investments Commission gave ETF providers the green light for crypto ETFs last year, but companies must meet a number of conditions meant to protect investors before they can launch ETFs.
