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Australia launches first-ever spot Bitcoin ETF

In this post:

  • The Australian Securities Exchange approved the first spot Bitcoin ETF, the VBTC.
  • The move follows the success of Bitcoin ETFs in the U.S. and Hong Kong.
  • CoinShares data shows significant outflows in digital asset investment products, with Bitcoin seeing $621 million in outflows last week.

Australia’s largest stock market, the Australian Securities Exchange (ASX), has approved listing the country’s first Bitcoin exchange-traded fund (ETF). This ETF, dubbed the VanEck Bitcoin ETF (VBTC), will be issued by the famous asset management firm VanEck.

Also Read: Australia announces plans to regulate digital service providers

The approval comes after the notable success of Bitcoin ETFs in the United States, where 11 spot Bitcoin ETFs were listed in January. Following the U.S. lead, Hong Kong also launched Bitcoin ETFs, indicating a growing global trend towards these investments. Introducing a Bitcoin ETF on the ASX clearly indicates Australia is eager to join the party.

There is huge demand and interest in Bitcoin ETFs

Australia already had a taste of spot Bitcoin ETFs. The Global X 21 Shares Bitcoin ETF (EBTC) was the first to debut in April 2022. More recently, the Monochrome Bitcoin ETF (IBTC) began trading on June 4 on Australia’s second-largest stock exchange, the Cboe Australia exchange. However, listing VBTC on the ASX adds visibility and credibility, attracting a wider range of investors.

Also Read: BlackRock’s Bitcoin ETF Surpasses Silver Trust

Arian Neiron, CEO and Managing Director at VanEck Asia Pacific expressed the growing demand for such investment options in Australia. He stated:

The demand for access to Bitcoin via a listed vehicle traded on ASX has been increasing, and many of our clients have told us that their clients are already positioned to have an allocation ready to invest.

As the largest stock exchange in the country, the ASX offers unparalleled exposure and access to Bitcoin, making it easier for investors to diversify their portfolios with crypto assets.

Crypto investments are thriving worldwide

Globally, digital asset investment products have seen a significant shift. According to CoinShares’ latest report, there were $600 million in net outflows last week, the largest since March 22. “The outflows were entirely focused on Bitcoin, seeing $621 million outflows. The bearishness also prompted $1.8 million inflows into short-bitcoin,” said James Butterfill, CoinShares Head of Research.

Source: CoinShares

These outflows follow a period of massive inflows, followed by a more hawkish-than-expected Federal Open Market Committee (FOMC) meeting. This meeting led investors to scale back their exposure to fixed-supply assets, contributing to the decline. As a result, total assets under management (AuM) fell from over $100 billion to $94 billion within a week.

Trading volumes also remained lower, totaling $11 billion weekly, compared to the $22 billion weekly average this year. Despite the dip, these volumes are still much higher than last year’s weekly average of $2 billion. Digital asset exchange-traded products (ETPs) hold a steady 31% of global trading volumes on trusted exchanges, highlighting their ongoing relevance in the market.

Source: CoinShares

Regionally, the United States saw most of the outflows, totaling $565 million. However, the negative sentiment was not confined to the U.S. alone. Canada, Switzerland, and Sweden experienced outflows of $15 million, $24 million, and $15 million, respectively. Conversely, Germany bucked the trend with $17 million in inflows, demonstrating a more positive outlook towards digital assets. And Australia followed right behind.

Source: CoinShares

The focus of the outflows was predominantly on Bitcoin, which saw a massive $621 million in outflows. This bearish trend also led to $1.8 million in inflows into short-bitcoin positions, indicating that some investors are betting on further price declines.

Despite the bearish sentiment surrounding Bitcoin, other digital assets attracted positive inflows. A broad selection of altcoins saw significant interest from investors. Ethereum led the pack with $13 million in inflows, followed by LIDO and XRP, which received $2 million and $1 million, respectively.


Cryptopolitan reporting by Jai Hamid

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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