Australia has gradually opened up to the cryptocurrency industry with the recent launch of VanEck’s first spot Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX). This significant development has drawn global attention to the country’s progressive approach to the emerging sector.
After four years of engaging with Australian regulators, investment management firm VanEck successfully launched the VBTC ETF. Arian Neiron, VanEck’s Asia Pacific CEO and Managing Director, emphasised the recognition of Bitcoin as an “emerging asset class” that many advisers and investors are keen to access.
Reflecting this sentiment, the 5th edition of the Independent Reserve Cryptocurrency Index (IRCI) released in February showed that 25% of Australians view Bitcoin more favourably following the U.S. approval of spot BTC ETFs in January. The report also indicated that 63% of crypto holders in Australia own Bitcoin, and 69% of Australians consider Bitcoin to be money, a store of value, or an investment asset.
In addition to investor interest, the Australian government has been proactive in establishing regulatory guardrails for the crypto industry. In October, the Australian Treasury proposed reforms aimed at protecting consumers while supporting innovation in digital assets and emerging technologies. The proposed framework focused on promoting innovation through technology neutrality and regulatory clarity, and utilising flexible regulatory tools to adapt to new developments.
Jamie Elkaleh, Country Manager at cryptocurrency company and exchange Bitget, believes that VanEck’s BTC ETF will foster healthy competition among existing ETF products in Australia. With options from Monochrome and Global X 21Shares already available, investors now have another alternative. Elkaleh noted that the approval of VanEck’s BTC ETF highlights the relevance of the asset class and could boost investor confidence in Bitcoin under safe regulatory conditions.
Elkaleh also pointed out that Australia’s welcoming attitude towards innovative products is evident in its early approval of a Bitcoin ETF. This progressive stance, ahead of similar approvals in the U.S., UK, and Hong Kong, demonstrates Australia’s forward-thinking approach.
While Australia’s crypto market is smaller compared to the U.S., embracing Bitcoin capital markets early sets a precedent influencing the industry. Awareness of Bitcoin among Australians has grown from 87% in 2019 to 93% today, according to the IRCI. Additionally, 57% of respondents aged 55-64 prefer to invest in Bitcoin through an ETF rather than an exchange, indicating growing interest among older investors.
Australia’s potential for growth in the crypto sector is bolstered by increasing public interest in Bitcoin products and government efforts to establish a strong regulatory framework. This progressive approach positions Australia as a leader in embracing and regulating digital assets.