Bitcoin ETFs are all the rage following the successful launch in the United States. The main stock exchange of Australia has completed the preparations for a second Bitcoin ETF listing.
The article reported that DigitalX Bitcoin ETF was set to get a listing on the ASX on 12th July 2024. However, this is not the first spot Bitcoin ETF listed on the Australian stock exchange. The second Bitcoin ETF listing is going to be available to investors on ASX under the ticker BTXX.
DigitalX’s Spot Bitcoin ETF
The issuer of the second spot Bitcoin ETF is DigitalX, which received regulatory approval from the Australian regulator on 12th July this year. It is important to note that DigitalX confirmed the regulatory approval to launch their Bitcoin spot ETF.
Meanwhile, the first spot Bitcoin ETF listed on ASX was approved in June in the same year and it was issued by VanEck. DigitalX confirmed the approval and listing of BTXX on 8th July in a social media post. CEO Lisa Wade noted that the approval of this Bitcoin ETF was a watershed moment.
She further stated that this investment vehicle tracks the spot prices of Bitcoin and allows ASX investors to gain direct access to Bitcoin on a regulated trading platform with high liquidity.
The article cited remarks from DigitalX chairperson Toby Hicks noting that the progress of this investment offering was also based on the approval from Australian regulators. The firm has formed a partnership with 3iQ to advertise and distribute it on a local and international level.
VanEck Listed First Spot Bitcoin ETF in Australia
VanEck, a global asset management firm based in the United States, launched and listed the first Australian spot Bitcoin ETF on 15th June 2024. The product was accessible to investors on 20th June.
VanEck reported that the first day of its spot Bitcoin ETF listing was concluded at approximately $1 million. The firm was also behind one of the spot Bitcoin ETFs launched in the United States with a reported first 10-day trading volume of $450 million.
Betashares an Australian fund management firm has also filed for a Bitcoin ETF application for listing on ASX as per a report published in Bloomberg in April this year.
Another update on spot Bitcoin ETFs in Australia published last month shared the details on the first-ever investment product to get a listing at ASX. The biggest stock exchange of the Kangaroo continent reportedly hosted 96,476 shares of the VanEck spot Bitcoin ETF on opening day.
The numbers indicated that the new investment product generated $1.3 million or 1.9 million Australian dollars in terms of trading volume on its debut day.
United States spot Bitcoin ETFs on the other hand have been reported to generate a subtotal of $4.5 billion in the form of inflows into 10 unique Bitcoin spot ETF listings accounting for $450 million per issuer.
The year 2024 has continued to be positive time for spot Bitcoin ETFs. Various analysts speculate that the number of Bitcoin and Ethereum spot ETFs is likely to emerge in Asian nations. Hong Kong is a nation that has already approved and listed 6 spot Bitcoin ETFs.
Future of Spot Bitcoin ETFs in Australian and US Markets
Keeping in view the increasing demand for spot Bitcoin ETFs, Australian regulators greenlit the first-ever spot Bitcoin ETFs issued by VanEck last month. This investment vehicle was listed under the ticker VBTC at the ASX. Jamie Hannah, deputy of investments and capital markets at VanEck noted that the Australian market is fairly conservative in comparison to the United States.
Therefore, the majority portion of inflows into the VBTC were sourced from the retail sector. He noticed that despite the market difference, the firm was positive about the product generating similar investment interest as in the USA.
ASX data projection reported that the VBTC share price reached $13.24 at the conclusion of opening day. VanEck CEO, Arian Neiron, has retained that demand for regulated, traditional, and transparent investment options has continued to grow among Australian investors.
