VanEck’s Spot Bitcoin ETF Gets Approval from ASX, Trading Begins June 20

Key Takeaways

• The first pot BTC ETF in Australia has drawn in around 46 BTC since launching on June 4, 2024.
• The VanEck Bitcoin ETF will be the 2nd spot BTC ETF to launch in Australia.
• It is unclear if Ethereum ETFs are being considered for listing on Australian exchanges.

The Australian Securities Exchange (ASX) has approved VanEck to issue its first spot Bitcoin (BTC) exchange-traded fund (ETF) as institutional demand for crypto continues to climb.

The VanEck Bitcoin ETF (VBTC) will begin trading on Australia’s largest stock market on June 20, 2024.

VanEck on ASX

After resubmitting its application to the ASX in February 2024, VanEck has secured top billing to become the first spot BTC ETF traded on the ASX, and the third to be listed in Australia.

For three years VanEck has been working with the exchange and regulators to see a spot BTC ETF issued on the exchange. The issuer who already has a presence in U.S. markets with the VanEck Bitcoin Trust (HODL), will now be listed on the largest stock exchange in Australia.

According to Arian Neiron, CEO and Managing Director at VanEck Asia Pacific, there’s been an uptick in institutional appetite for Bitcoin. Furthermore, he notes that “many” of their clients are “already positioned” to allocate an investment.

Similarly to the Hong Kong spot Bitcoin and Ethereum (ETH) ETFs which launched in April, it’s unlikely that Australian crypto ETFs will see hundreds of millions in daily flows.

However, data provided by HeyApollo  seems to suggest a healthy appetite, with Australian BTC ETFs more than doubling their BTC holdings since launching on June 4, 2024.

Bitcoin ETFs on Cboe

Australia’s first spot Bitcoin (BTC) exchange-traded funds (ETFs) began trading on June 4, 2024, on the Australian arm of the Cboe Global Markets exchange.

Australian-based firm Monochrome Asset Management will launch the first and only Bitcoin-backed ETF in Australia under the ticker IBTC.

The fund will carry a management fee of 0.98%, which may be considered high given that many U.S. BTC ETFs have rates of around 0.25, with Grayscale’s GBTC fee of 1.50% being the highest. Notably, Monochrome has chosen U.S.-based Gemini Trust Company as the custodian  of the fund’s BTC.

Cboe Goes Crypto

As per the Cboe Global Markets website, Cboe Australia is an exchange specializing in ETFs, and will be the first to list a spot BTC ETF, ahead of the larger Australian Securities Exchange (ASX).

Cboe Australia claims to have a 40% share  of the Australian ETF market and also reports having a daily trading record of $5.98 billion. Notably, since 2022  it has listed BTC  and Ethereum (ETH) ETFs  provided by Global X 21 Shares, though only indirectly.

Cboe Australia will become the first and only Australian ETF to directly hold Bitcoin. It is unknown if or when spot ETH ETFs will launch in Australia, though this could largely depend on how the spot BTC ETF performs.

The ASX, which is one of the top 25  stock exchanges in the world and trades an average of 3.5 billion a day, plans to launch its own spot BTC ETF by the end of the year, which will likely see even greater participation from Australian institutions.

Though the Cboe’s fund is expected to attract a great deal of investment, it’s worth noting that it is just one single ETF on one exchange. It is unlikely that it will compare, let alone compete with, its U.S. or Hong Kong counterparts.

Australia Prepares for Bitcoin ETF Launches

Van Eck Associates Corp., DigitalX Ltd., and BetaShares Holdings Pty were rumored to be key issuers. Notably, the application from Monochrome Asset Management was led by former Binance Australia CEO Jeff Yew.

The largest equity trading marketplace, ASX Ltd., is anticipated to approve the first spot-Bitcoin ETFs before the end of 2024.

Despite these developments, the ASX has not committed to a specific timeline but continues to engage with various issuers as per the report.

Bitcoin ETF Inflows and Crypto Engagement

In 2022, Cosmos Asset Management launched a spot Bitcoin ETF. Reports say that it was delisted later due to low inflows. In contrast, the Global X 21Shares Bitcoin ETF managed about $62m in assets. 

It is worth noting that Australia requires adherence to strict crypto frameworks. For instance, any platform operator must hold an Australian market license. Unauthorized trading of financial products may lead to significant legal breaches.

Despite that, players are entering the market due to high adoption and engagement. According to a Swyftx report , the number of Australians who currently own cryptocurrency has steadily increased.

The figure stands at 4.5m for 2023 from 4.2m in 2022, and 3.4m in 2021. Cryptocurrency adoption among millennials has also surged from 35.6% to 40.7%, with an estimated 32.4% of Australians having owned digital assets at some point.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

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