Australia’s First Spot Bitcoin ETF Goes Live

Australia’s primary equity exchange marked a significant milestone by introducing its inaugural spot-bitcoin (BTC) exchange-traded fund (ETF) on Thursday. The launch comes amidst a growing global demand for simplified avenues to invest in cryptocurrencies.

The VanEck Bitcoin ETF (VBTC) commenced trading on the Australian Securities Exchange (ASX), a platform that dominates 90% of the country’s equity market. The ASX gave the green light for the product listing earlier this week.

VBTC experienced a 1% increase from its opening price, closing at A$20.06 ($13.4) after trading 99,791 shares. This ETF functions as a feeder fund, offering exposure to bitcoin through investments in the company’s Bitcoin Trust (HODL), a U.S. ETF listed on Cboe.

Although the launch of spot bitcoin products in the U.S. preceded the Australian debut by six months, and Hong Kong by seven weeks, VBTC is not the initial option providing bitcoin exposure to Australian investors.

Monochrome Asset Management’s Monochrome Bitcoin ETF (IBTC) was introduced on June 4 on the Cboe Australia exchange, a smaller competitor of ASX. In contrast to VBTC, this fund directly holds bitcoin.

Since its inception, IBTC has maintained an average daily trading volume of around 55,000 units, amounting to approximately A$550,000 daily. The emergence of both exchange-traded funds signifies a wave of bitcoin ETFs entering the Australian market, as reported by the Australian Financial Review.