In a significant milestone for the cryptocurrency sector, the Australian Securities Exchange (ASX) has approved its first spot Bitcoin exchange-traded fund (ETF). This groundbreaking development allows VanEck to list its VanEck Bitcoin Trust (‘HODL’) on the ASX, providing Australian investors direct exposure to Bitcoin.
The VanEck fund operates as a “feeder fund” with a passive management strategy, according to the product disclosure statement. It invests in the VanEck Bitcoin Trust, a U.S.-based ETF listed on the Cboe BZX Exchange, Inc (Cboe).
Earlier this month, Monochrome Asset Management’s Monochrome Bitcoin ETF (IBTC) received approval from Cboe Australia, a smaller competitor to ASX. Notably, Monochrome’s product is the first and only ETF in Australia that directly holds Bitcoin, differentiating it from VanEck’s feeder fund approach.
“A Bitcoin ETF being available on major Australian stock exchanges is a significant step forward for the crypto-space,” said Michael Bacina, Blockchain Australia Chair and Digital Assets Lawyer. “It’s important to note the key differences between the products, as only one of the ETFs has direct Bitcoin holdings and can offer holders a redemption in Bitcoin.”
VanEck’s approval marks the introduction of the lowest-cost Bitcoin ETF in Australia, set to launch on June 20, 2024. The company resubmitted its application for this product in February. Other firms like DigitalX Ltd. and Sydney-based BetaShares have also shown interest, with BetaShares working towards launching a similar product on the ASX.
Unlike in the U.S., Australian firms need approval from both the regulator, the Australian Securities & Investments Commission (ASIC), and the exchange listing the product. Despite these hurdles, VanEck aims to pave the way for Bitcoin ETFs on the ASX.
After the U.S. approved spot Bitcoin ETFs in January, expectations rose for similar developments in the Asia-Pacific region, which strives to position itself as a major crypto hub. Leveraging its global expertise and infrastructure, VanEck aims to offer Australian investors a top-tier cryptocurrency investment solution.
