The Australian Securities Exchange (ASX) has admitted its first spot Bitcoin exchange-traded fund (ETF), the VanEck Bitcoin ETF (ASX:VBTC).
The move marks a significant milestone in the Australian financial market and cryptocurrency industry as crypto assets increasingly move into the investment mainstream, supported by increased regulatory guidance around the product category and growing consumer demand.
VBTC will be backed by a Bitcoin holding via a US-domiciled master fund, ensuring that each unit of the ETF corresponds to a specific amount of Bitcoin. This structure aims to give investors exposure to the price of Bitcoin, providing investors with a robust and transparent reflection of the crypto asset’s value.
“You’re able to buy and sell those units through a traditional brokerage account”
Andrew Campion, GM of Investment Products & Strategy at ASX, said: “We’re really pleased to admit the ASX’s first Bitcoin ETF, responding to increased customer demand for access to cryptocurrency assets, and providing access to more investment options for Australians.
“At ASX, a key part of our role is to ensure that investors can have confidence in trading securities and have certainty in the structure of their holdings. To achieve this, we’ve been working on bringing a crypto asset ETF to market for a number of years, including establishing a new category of permissible underlying assets for ETFs in August 2022 which includes Bitcoin and Ether.
“While it has been possible to trade Bitcoin via crypto exchanges, trading units with exposure to Bitcoin via an ETF on an exchange like ASX means you’re able to buy and sell those units through a traditional brokerage account, simplifying the process and opening the opportunity to more Australians. As the demand for digital assets continues to grow, we are proud to offer a regulated avenue for Australian investors to access the crypto asset market.”
Backed by Bitcoin holding via a US-domiciled master fund
This development is part of a broader trend in the Asia-Pacific region following the recent approval of the first batch of spot bitcoin and ether ETFs in Hong Kong.
VanEck is leveraging its global expertise and infrastructure from approved spot Bitcoin ETFs in the U.S. and similar products in Europe. ASX, which handles about 80% of the equity trades in Australia, has been actively engaging with several issuers interested in launching crypto asset-based ETFs.
The VanEck Bitcoin ETF will primarily function as a “feeder fund” using a passive management strategy. This fund will give investors exposure to Bitcoin by investing in the VanEck Bitcoin Trust (‘HODL’), a U.S.-based ETF listed on the Cboe BZX Exchange, Inc.
The move to introduce spot bitcoin ETFs on ASX comes as the exchange looks to expand its cryptocurrency offerings. Currently, Australian investors can trade spot bitcoin ETFs on the CBOE Australia, where the Global X 21Shares Bitcoin and Ethereum ETFs are listed. These funds represent the only two spot crypto funds available in Australia as per the CBOE’s website.
