Bitrabo Editorial
The Australian Securities Exchange (ASX), the most extensive stock exchange in Australia, has given the green light for its inaugural spot Bitcoin exchange-traded fund (ETF) listing.
VanEck Bitcoin ETF (VBTC), to be launched on June 20, will be issued by VanEck, an asset management company. This approval comes after VanEck’s successful rollout of the VanEck Bitcoin Trust (HODL) in the United States earlier this year.
Growing Market for Bitcoin ETFs in Australia
Arian Neiron, VanEck’s CEO for the Asia-Pacific region, underlined the increasing demand for Bitcoin exposure in Australia, mainly through regulated and transparent investment avenues.
Recognizing Bitcoin as a burgeoning asset class, Neiron stressed that VBTC would streamline access to Bitcoin for advisors and investors by managing the intricacies linked with acquiring, storing, and securing digital assets.
According to Bloomberg, besides VanEck, other players in the Australian market are gearing up to launch their spot-Bitcoin and Ethereum (ETH) funds.
BetaShares Holdings Pty in Sydney and DigitalX Ltd. are reportedly working towards listing their offerings on the primary Australian board. BetaShares plans to introduce spot Ethereum and Bitcoin ETF funds shortly to address the “growing demand” for diversified digital asset investments.
While VBTC marks the first spot for Bitcoin ETF to receive ASX approval, it is not the initial launch in Australia. Two other Bitcoin ETFs have been introduced in the country over the last two years.
Transition from Bitcoin to Alternative Coins
In the wider realm of digital asset investment products, recent data from asset manager CoinShares uncovers significant outflows totaling approximately US$600 million.
These outflows, the most substantial since March 22, coincided with a more hawkish than anticipated Federal Open Market Committee (FOMC) meeting, prompting investors to reduce their fixed-income asset exposure. Consequently, total assets under management (AuM) decreased from over $100 billion to $94 billion.
The outflows were predominantly observed in Bitcoin, with roughly US$621 million withdrawn. However, several alternative coins experienced inflows during this period.
Ethereum, Lido (LDO), and XRP received noteworthy inflows of US$13 million, US$2 million, and US$1 million, respectively. This indicates that investors sought diversification beyond Bitcoin amid recent market volatility.
At present, the primary cryptocurrency in the market is trading at $65,400, exhibiting a 2% decrease in the 24-hour span and nearing a 6% decline over the past seven days, edging towards the critical $65,000 support level.