The ASX (Australian Securities Exchange) achieved a significant milestone in the area of cryptocurrencies as it launched the VanEck Bitcoin ETF, which is currently the first spot bitcoin exchange-traded fund in the market. This development, represented by its symbol VBTC, offers the opportunity to engage in Bitcoin through mainstream finance. VanEck has reported that as of Wednesday this week, the ETF has total net assets of approximately USD 982,850, which is about USD 655,560.
The VBTC operates as a feeder fund, which means it invests directly in the VanEck Bitcoin Trust, which is listed in the United States but commonly referred to simply as HODL. It provides Australian investors with a more convenient and direct way of investing in Bitcoin without having to go through the complex process of understanding the exchange markets. As noted Andrew Camping, the ASX general manager for investment products & strategy recently stated this as a significant development. He further explained that having the ability to trade Bitcoin through an ETF in a traditional exchange such as ASX makes it easier to invest and can open it up to a bigger market in Australia.
The ASX is one of the most renowned stock exchanges in the country of Australia. It handles an absolute majority, over 80%, of all transactions that occur in the country’s market. In May, its reported domestic market value was $2.6 trillion, underlining its large contribution to the Australian financial scene.
This evolution was quite expected to be witnessed in ASX since it had earlier announced that it planned to launch different forms of Bitcoin ETFs within this year. BetaShares and DigitalX are just some of the other companies that also applied to list Bitcoin ETFs other than VanEck.
Moreover, Cboe Australia, the second largest stock exchange in Australia, is getting into the cryptocurrency ETF market, having approved Monochrome Bitcoin ETF (IBTC) early this month.
This comes after Australian investors were allowed to trade in spot Bitcoin ETFs beginning in April 2022 when Global X 21Shares Bitcoin and Ethereum ETFs went live on the Cboe Australia platform.
The global trends in the context of cryptocurrency ETFs remain progressive further in the future. In January this year, the United States witnessed the introduction of its first spot crypto ETFs, the total asset of which has now reached $56.06 billion across 11 bitcoin funds which is way beyond expectations. Similarly, Hong Kong started spot ETFs for Bitcoin and Ether in April, and they surged to more than $1.38 billion in total net assets.
The launch of the VanEck Bitcoin ETF on ASX not only makes it easier for conventional investors to stake their bets on cryptocurrencies but also underlines that cryptocurrencies are increasingly becoming a part of the traditional financial markets. This change in sentiment toward cryptocurrencies demonstrates their growing mainstream acceptance and provides investors with legally acceptable ways to expand their portfolios.