Today marks a milestone in the integration of cryptocurrencies into Australia's mainstream financial markets, with the launch of the country's first Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX). The VanEck Bitcoin ETF, which began trading with assets worth around A$990,000, represents a significant development after more than three years of discussions with ASX exchange operators.
The newly launched fund will not hold Bitcoin directly. Instead, the fund will invest in the US-listed VanEck Bitcoin Trust, which began operations in January this year. This indirect investment approach is also reflected in VanEck's European operations, where its subsidiary oversees 12 similar cryptocurrency funds.
The launch of the VanEck Bitcoin ETF comes at a time of renewed investor interest in cryptocurrency-backed ETFs. This renewed interest is due in part to the regulatory approval of several ETFs in the US last January, which subsequently led to billions of dollars being invested in these products. Last April, Hong Kong launched six digital currency exchange-traded funds in Hong Kong.