The VanEck Bitcoin ETF (Exchange Traded Fund) is finally available on Australia’s main stock exchange, the Australian Securities Exchange (ASX) under the ticker name VBTC.AX. The ETF made its debut with around $660,429 worth of assets.
According to a March statement by VanEck Australia, the Securities and Exchange Commission’s approval of BTC ETFs in the US has led to a surge in requests from brokers and financial advisers nationwide.
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VanEck’s Bitcoin ETF is not the first crypto-based ETF in Australia. Rival exchanges run by the local subsidiary of CBOE Global Markets have had BTC ETFs to offer clients. VanEck’s ETF, however, is the first to launch on Australia’s main exchange. The development sheds light on the growing acceptance of crypto-based products among mainstream and traditional finance investors.
Like with other BTC ETFs, VanEck does not hold the underlying asset but rather invests in the US-listed VanEck Bitcoin Trust.
Will Bitcoin rally following the new ETF listing?
The approval of BTC ETFs in the US in January was followed by a massive surge of inflows into the new financial product. Due to the rise in BTC ETF inflows, the original crypto hit an all-time high of $73,737 in March.
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BTC’s price has fallen by over 10% since its March peak. If the launch of VanEck’s BTC ETF catches on in Australia, we may witness another surge in the asset’s price. Since it is not the first ETF to have launched in the country, interest in such an investment vehicle may remain unchanged.
Inflation figures in the US have gone down for the month of May, which could lead to investors betting on riskier assets such as Bitcoin (BTC), thereby, leading to a price spike.