ASX to list first-ever crypto ETF

VanEck will this week launch Australia’s first Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX), the firm has announced.

Set to list this Thursday (20 June), VanEck promises that its Bitcoin ETF (VBTC) will “be the most cost-effective Bitcoin fund exposure in Australia”.

The upcoming launch of the VanEck Bitcoin ETF comes just six months after the US Securities and Exchange Commission (SEC) approved the listing and trading of spot Bitcoin exchange-traded products.

The SEC, despite its approval, said it remains “merit neutral” on the asset class, deeming cryptocurrency investments, broadly, as “speculative [and] volatile”.

Bitcoin exchange-traded notes (ETNs) have also been launched in several European stock exchanges.

The value of Bitcoin has surged more than 55% in the year to date, valued at AU$100,550 per Bitcoin. However, like all cryptocurrencies, Bitcoin’s market value is highly volatile. In the seven months between November 2021 and June 2022, Bitcoin’s price dropped by nearly two-thirds before a sharp recovery over the next year.

VanEck chief executive and managing director for Asia Pacific Arian Neiron recognised that, while investments in crypto remain “polarising”, the firm has seen increasing demand for this emerging asset class from advisers and investors.

“We have developed a robust offering that we believe provides an opportunity for bitcoin exposure using a regulated, transparent and familiar investment vehicle.”

Neiron added: “VBTC also makes Bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing and securing digital assets is no longer necessary.”

According to a recent survey by VanEck, which specialises in ETF investments, more than three-quarters (76.2%) of its advisers had clients enquiring about Bitcoin.

Additionally, around a third (33%) of advisers said they would add a Bitcoin ETF to client portfolios if it was available on the ASX. Another 22.9% said they were undecided.

VanEck currently boasts 42 ETFs listed on the ASX.