In the latest sign retail crypto exchange-traded funds are sweeping the Asia-Pacific region, the Australian Stock Exchange on Thursday listed its first Bitcoin ETF.
The fund, managed by VanEck under the ticker VBTC, follows the rollout of six Bitcoin and Ethereum ETFs in Hong Kong in April.
VanEck, which launched a similar product in the US in January, said a survey showed three-quarters of financial advisors in Australia were fielding inquiries from clients about Bitcoin.
Furthermore, a third of these advisors indicated they would consider adding a Bitcoin ETF to their clients’ portfolios if they were available on the ASX, while 23% remained undecided.
Ongoing enthusiasim
Arian Neiron, CEO and Managing Director of VanEck Asia Pacific, acknowledged the divisive nature of cryptocurrency investments.
“Notwithstanding that crypto investing is a polarising topic, we recognise Bitcoin is an emerging asset class that many advisers and investors want to access” Neiron said.
The ongoing enthusiasm for cryptocurrency ETFs is not confined to Australia.
At the end of April, Hong Kong became the first place in Asia to launch spot ETFs for both Bitcoin and Ether.
Yet despite the excitement, the half-dozen ETFs that debuted received a tepid market response, which was expected given the much smaller market size compared to the US.
Hong Kong’s ETFs drew almost US$13 million when they debuted, 0.3% of the money that gushed into the US Bitcoin ETFs in January.
Singapore stands firm
And while the likes of Singapore have firmly shut down hopes for local crypto ETFs, other countries are also starting to approve applications.
Those that are approving crypto ETFs elsewhere are keeping them exclusive.
Thailand’s Securities and Exchange Commission approved its first Bitcoin ETF in early June, which is managed by One Asset Management. Another ETF from MFC Asset Management is awaiting approval.
Access to both funds will be restricted to institutions and wealthy investors.
Malaysia, while not yet offering spot ETFs, is also venturing into digital asset investments.
Affin Bank recently introduced a fund targeting digital assets, including Bitcoin, Ether, and blockchain companies such as Coinbase.
But again, it is available through the bank’s invitation-only premier banking services.
Callan Quinn is DL News’ Hong Kong-based Asia Correspondent. Get in touch at callan@dlnews.com.