Australian Exchange Lists Bitcoin ETF with 13M Inflows on Debut Day

Bitcoin ETF Makes Successful Debut on Australian Exchange, Attracts $1.3M Inflows on First Day


By Tanzeel Akhtar
Published: June 20, 2024 03:46 EDT
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Reading Time: 1 min


VanEck, an investment management firm, saw its inaugural spot bitcoin exchange-traded fund (ETF) listed on the Australian Securities Exchange (ASX) draw in $1.3 million on its first day of trading.
Trading under the ticker “VBTC,” the ETF debuted with assets worth Aus $982.85K ($655.56) and imposes a fee of 0.59%. Notably, this marks the first Bitcoin ETF launched on the main exchange in Australia.
The VanEck ETF provides investors with direct exposure to Bitcoin without the need to purchase the cryptocurrency itself. This is a significant milestone for the Australian financial market.
To provide some context, BlackRock’s new spot bitcoin ETF, which trades under the ticker “IBIT,” saw substantial trading volume of $1 billion on its first day back in January.
A Minor Milestone?
“$1.3 million is just a drop in the ocean,” remarked Laurent Kssis, an independent board member of Issuance Swiss AG. “Previous bitcoin exposure was able to attract larger inflows for a brief period when they were listed last year, but it all comes down to the naming convention. This product is now an ETF, which provides greater transparency and clarity to the exposure of the underlying asset, not to mention it also offers lower management fees,” Kssis added.
The seasoned ETF veteran noted that, overall, this is a positive development for institutional investors who have been seeking clarity and improved products, even though the exposure ultimately remains the same.
In 2022, Australia introduced its first Bitcoin and Ether ETFs. Cosmos Asset Management and 21Shares AG, in collaboration with ETF Securities, listed crypto ETFs on the Chicago Board Options Exchange (CBOE).
ASIC Adopts a Cautious Stance
The launch of the spot bitcoin ETF in Australia comes after extensive deliberation and approval processes by the Australian Securities and Investments Commission (ASIC), underscoring the regulatory body’s cautious approach to integrating digital assets into the traditional financial system.
The introduction of a spot bitcoin ETF in Australia is a significant step in bridging the gap between traditional finance and the rapidly growing crypto sector.
The key distinction between spot bitcoin ETFs and the derivative-based crypto ETFs already trading in Australia is that the former directly hold Bitcoins, while the latter use financial instruments like futures contracts to replicate Bitcoin’s prices.
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