Australian Largest Stock Exchange Lists First Ever Spot Bitcoin ETF
The Australian Stock Exchange (ASX) has listed its first-ever Bitcoin spot ETF as per a new update. As per the details, the fund will open for business starting from 20th June 2024. This spot ETF is issued and managed by the Investment management firm VanEck.
VanEck Bitcoin ETF
A press release issued by the financial organization on the matter has indicated that the fund is called VanEck Bitcoin ETF (VBTC).
The document was issued by the firm a few months after getting regulatory approval for their investment vehicle. VanEck reportedly received the approval to offer spot Bitcoin ETFs in the United States on 11th January 2024.
Arian Neiron, VanEck’s CEO for the Asia-Pacific region, recently spoke with media discussing the growing demand for spot Bitcoin ETF among Australian investors.
He further stated that investors view spot Bitcoin ETF as a familiar and transparent investment opportunity. Speaking on the matter, he further stated that the firm has also classified Bitcoin as an upcoming investment option.
He further stated that a number of investors and advisors are looking to access Bitcoin. As per his statement, VBTC is a more accessible and less restricted way to manage Bitcoin-related investments.
Spot Bitcoin ETF Listing and Demand in Australia
Commenting on the matter of Bitcoin spot ETFs, Neiron noticed that by investing in VBTC as an investment option, investors will get an advantage of covering back-end requirements.
He further stated that the technical side of purchasing, storing, and managing Bitcoin is handled by the ETF issuers. He further noticed that issuers are also responsible for taking care of the security of the Bitcoin reserves.
With the approval of the latest Bitcoin spot ETF, VBTC has become the first-ever Bitcoin ETF that has been listed and approved by ASX. However, in the last two years, Australian exchanges have approved and listed two more Bitcoin spot ETF offerings.
The Cboe Australian exchange also approved the Monochrome Bitcoin ETF and started trading at the second-largest stock exchange in the region.
The Monochrome Bitcoin ETF will list shares on 4th June 2024 at the Cboe Australian exchange. The IBTC reserves are traded in an offline storage that is not connected to the internet.
This condition is in accordance with the crypto custody solution regulatory requirements for Australian Institutions. In April 2022, the Global X 21 Shares Bitcoin ETF or EBTC was the first ever Bitcoin ETF offering to debut in the area.
Spot Bitcoin Approval in the US
The latest crypto market price analysis reported that the price of cryptocurrencies was on the rise recently. The analysis indicated that tailwinds from spot Bitcoin ETF approval of ASX and spot Ethereum ETF approval from the Securities and Exchange Commission of the United States were the main contributing factors.
As of 20th June 2024, the market gained a significant surge with a 1.70% increase.
The overall market cap of the market rose to $2.3 trillion following the new trend. According to the analysts, VanEck Bitcoin ETF (VBTC) has become the first Bitcoin ETF for trading at the largest exchange of Australia namely ASX.
The first day of trading of the VanEck-issued Bitcoin ETF named ASX reported a trading volume of $1.3 million.
Meanwhile, the first day of spot Bitcoin ETF approval in the United States was closed at $4.5 billion with an average of $450 million per issuer. However, VanEck Australia has reported that it is positive that the investment vehicle was going to mirror the success of the US-issued spot Bitcoin ETFs eventually.
These figures indicated in the disparity in starting trading volumes against the aggregate market capacity. Australian markets are more conservative in comparison to the US and the majority of inflows are sourced from the retail sector rather than commercial investors.
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