Asset management firm VanEck is set to launch Australia's first spot bitcoin investment fund.
According to a blog update, the Australian Securities Exchange (ASX) approved the listing of the VanEck Bitcoin ETF on June 20. The giant money manager said its offering would be the lowest-cost Bitcoin ETF in Australia.
VanEck has been pursuing a spot BTC ETF in Australia since 2021, becoming the first entity to formally apply for such products with the ASX. Following success in the US and advanced Australian regulatory policies, the company reintroduced its BTC ETF offering in February.
The latest update from VanEck confirmed regulatory approval has been received from the Australian Securities and Investments Commission (ASIC), one of two agencies, along with the ASX, that must approve products prior to listing.
Launching on the ASX gives the wealth advisor access to the bulk of the Australian capital market. It is said that about 90% of Australia's stock portfolio lives on the ASX. “Like these investors, we view an ETF as the ideal delivery mechanism for an asset class like Bitcoin,” VanEck said. books.
However, ASIC has advised investors to remain aware of the risks associated with investing in funds that track cryptocurrency prices.
Bitcoin and cryptocurrency ETFs are spread across multiple jurisdictions
After a strong start to the life cycle of ETFs in the US, other countries are accelerating their plans to include crypto-backed funds and allow investors access to such products.
Some believe that Asian markets could be the next crypto hub to approve cryptocurrency ETFs. Spot BTC funds have already opened in Hong Kong, although the investment products have seen modest inflows to their US counterparts.
Hong Kong has also shown a willingness to highlight controversial cryptocurrency practices such as Ethereum (ETH) staking, a move that could attract huge capital inflows into the region.