American investment management firm VanEck is poised to launch the first spot Bitcoin exchange-traded fund (ETF) on Australia’s securities trading platform this week. According to an official announcement, the VanEck Bitcoin ETF (VBTC) will go live on the Australian Securities Exchange (ASX) on Thursday, June 20.
Australia’s Big Step Towards Crypto Adoption
The Australian Financial Review reported that this approval marks a significant step for Australia in embracing wider crypto adoption. The ASX, which handles around 80% of the country’s equities trading, has given the green light to VanEck’s product. This development follows similar approvals for ETFs by Global X and Monochrome Asset Management on rival exchange Cboe Australia.
VanEck Unveils Australian ETF
The approval of VanEck’s Bitcoin ETF in Australia comes five months after the U.S. Securities and Exchange Commission (SEC) greenlit the launch of HODL on U.S. exchanges alongside other ETFs issued by top asset managers like BlackRock, Ark Invest, Grayscale, Fidelity, and Bitwise.
VanEck revealed that it has been in discussions with Australian regulators about launching a spot Bitcoin ETF since early 2021. The firm claims to be the first to submit an application with the ASX and work with the Australian Securities and Investments Commission (ASIC) on the product’s mechanics.
Due to regulatory hurdles, exchange framework challenges, and the lack of initial approval from ASIC, VanEck resubmitted its application for the VBTC launch in February. Upon its launch, VanEck asserts that VBTC will be the lowest-cost Bitcoin ETF in Australia.
“These products are complex and can be volatile. Investors should carefully consider their own financial situation and investment objectives before investing in these products,” said ASIC Commissioner Cathie Armour.
Despite these warnings, the approval of the VanEck ETF is seen as a pivotal moment for the Australian cryptocurrency industry. It is anticipated that this will be the first of many similar products to launch on the ASX in the coming months, paving the way for greater institutional involvement and investor participation in the Australian crypto market.
