Australia’s first spot Bitcoin ETF will launch on the Cboe exchange on June 20

Australia is dipping its toes into the cryptocurrency waters as it enters the future of finance with the approval of its first spot Bitcoin ETF (Exchange-Traded Fund) by the Australian Securities Exchange (ASX), Australia’s largest exchange, a revolutionary development for the nation’s investment landscape, to put it mildly.

Ethereum investment firm VanEck is leading the pack with its ETF set to trade on the Cboe Australia exchange starting June 20, 2024.

The approval of this spot Bitcoin ETF marks a significant achievement for Australian investors, providing a new regulated route to gain exposure to Bitcoin (BTC). This move closely follows similar regulatory approvals in other major financial markets, reflecting a global trend towards acceptance of cryptocurrency-based investment products.

Key ETF details

The newly approved ETF, named VanEck Bitcoin ETF (VBTC), is the brainchild of investment firm VanEck. This approval comes hot on the heels of VanEck’s success in the United States, where on January 11 the firm launched VanEck Bitcoin Trust (HODL), another spot Bitcoin ETF. This direct holding approach offers greater transparency and stability, aligning with the preferences of cryptocurrency purists who argue that spot ETFs more accurately reflect the current value of Bitcoin than their futures-backed counterparts.

Growing demand for Bitcoin exposure in Australia

Arian Neiron, CEO of VanEck for the Asia-Pacific region, underlined this growing demand for exposure to Bitcoin in Australia. Arian believes investors and financial advisors recognize Bitcoin as an emerging asset class with substantial potential.

He states: “VBTC also makes Bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing and securing digital assets is no longer necessary.” This means investors will no longer have to juggle between the complexities of private keys and wallets; the VBTC ETF handles it all.

Not the first, but a historic approval

While the VBTC ETF is the first spot Bitcoin ETF approved by the ASX, it is not the first of its kind in Australia. Over the past two years, two more Bitcoin ETFs have made their debut in the country:

1. Global X 21 Shares Bitcoin ETF (EBTC): Launched in April 2022, the EBTC ETF provides exposure to Bitcoin price movements. It has gained traction among investors looking for an easy way to invest in digital currency.

2. Monochrome Bitcoin ETF (IBTC): Recently approved and traded on Australia’s second largest stock exchange, the Cboe Australia Exchange, the IBTC ETF further demonstrates the growing acceptance of Bitcoin investment products in the Australian market.

Market impact and future prospects

The launch of the VBTC ETF is expected to have a significant impact on the Australian investment market, offering a liquid and convenient investment vehicle for Bitcoin. Prior to this, Australian investors had to rely on indirect investment methods or offshore products, which did not benefit from the same level of investor protection.

This development is not isolated; mirrors global trends as other jurisdictions such as the United States and Hong Kong have recently approved spot Bitcoin ETFs, signaling growing acceptance and integration of cryptocurrencies into major financial markets. Approval in the US came in January 2024, while Hong Kong followed suit by the end of April, further positioning itself as a leader in the cryptocurrency investment space.

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