The Australian Securities Exchange (ASX), which represents 90% of Australia’s equity market, has granted its first approval for a spot Bitcoin (BTC) exchange-traded fund (ETF) to VanEck. According to VanEck’s blog, the ETF will be launched on June 20 and will be the lowest-cost Bitcoin ETF in Australia. VanEck resubmitted its application in February.
In April, it was reported that DigitalX Ltd. had also applied for ASX approval, and Sydney-based BetaShares was working towards launching a similar product. Bloomberg had previously indicated that the first spot Bitcoin ETFs could be approved by the end of 2024, making this approval ahead of schedule.
In Australia, companies need the approval of both the Australian Securities & Investments Commission (ASIC) and the exchange listing the product. In May, ASIC confirmed that DigitalX LtdVanEck, and BetaShares either had the necessary licences or were collaborating with licensed firms.
Earlier this month, Monochrome Asset Management’s Monochrome Bitcoin (BTC) ETF (IBTC) received approval from Cboe Australia, ASX’s smaller competitor. At that time, it was noted that this ETF was the first in Australia to directly hold Bitcoin.
Despite regulatory and exchange framework challenges, VanEck aims to pioneer the introduction of Bitcoin ETFs to ASX investors. Industry experts expressed greater enthusiasm for a spot Bitcoin ETF on ASX due to its larger trading volumes, suggesting that ASX’s approval of VanEck’s product could enhance the legitimacy of crypto ETFs in the region.
Following the U.S. approval of spot Bitcoin ETFs in January, there has been significant anticipation for similar approvals in the Asia-Pacific region as countries strive to become key crypto hubs. VanEck, having established spot Bitcoin ETFs in the U.S. and Europe, intends to utilise its global expertise to provide Australian investors with a premier cryptocurrency investment solution.