The Australian Securities Exchange (ASX) recently approved the first Bitcoin exchange-traded fund (ETF) in Australia. However, the trading volume on its debut day was relatively low, reaching only $1.3 million. This is in stark contrast to the United States’ spot Bitcoin ETFs, which recorded a total trading volume of $4.5 billion across 10 funds on their first day, with an average of around $450 million each.
Despite the difference in market size, investment firm VanEck, the issuer of the VanEck Bitcoin ETF (VBTC), remains optimistic about the product’s potential for growth in Australia. VanEck’s deputy head of investments and capital markets, Jamie Hannah, stated that the Australian market is smaller and primarily driven by retail investors, but there is a possibility of following a similar path to the US.
Hannah also mentioned that there has been significant interest from both retail and professional investors in gaining exposure to Bitcoin through ASX. On the first day of trading, VBTC opened at $13.24 and closed at $13.34, with a total of 96,476 shares traded during the day, according to ASX data.
VanEck is confident that their ETF will attract more investors as Bitcoin gains recognition as an emerging asset class. Arian Neiron, VanEck’s CEO for the Asia-Pacific region, emphasized the growing demand for regulated and transparent investment vehicles in Australia. He stated that VBTC makes Bitcoin more accessible by simplifying the process and removing the need for investors to understand the technical aspects of acquiring, storing, and securing digital assets.
Although VBTC is the first spot Bitcoin ETF listed on ASX, two other Bitcoin ETF products have already been launched in Australia. The Monochrome Bitcoin ETF was recently approved and started trading on the Cboe Australia exchange, while the Global X 21Shares Bitcoin ETF became the first Bitcoin ETF to debut in Australia in April 2022.
In conclusion, the debut of the first Bitcoin ETF on ASX saw relatively low trading volumes compared to its counterparts in the US. However, VanEck remains hopeful that the product will gain traction in Australia as more investors seek exposure to Bitcoin through regulated investment vehicles.