Crypto News – VanEck’s Spot Bitcoin ETF to Debut in Australia in Just 3 Days
Crypto News- The Australian Securities Exchange (ASX), which handles the majority of equity trading in the country, has confirmed that VanEck is the sole applicant to have received approval for a Bitcoin ETF. However, discussions continue with other potential issuers.
“Despite the divisive nature of crypto investing, we acknowledge that Bitcoin is an emerging asset class that many advisors and investors are keen to access,” said Arian Neiron, VanEck’s CEO in the Asia-Pacific region.
Anticipation Builds for Australia’s Bitcoin ETF Market Entry
The crypto community is eagerly awaiting Australia’s entry into the Bitcoin ETF market, following the lead of the United States and Hong Kong, both of which launched similar products earlier this year. In the US, the debut of Bitcoin ETFs garnered significant attention, accumulating $57 billion. Meanwhile, Hong Kong’s spot Bitcoin ETFs have attracted a more modest $1.09 billion in assets, according to SoSo Value. Other Australian companies, such as Sydney-based BetaShares Holdings and DigitalX, are also preparing to list on the ASX. A spokesperson from BetaShares confirmed that the firm is working diligently to launch spot Bitcoin and Ethereum funds soon.
Analysts often compare Bitcoin to gold, highlighting its role as a store of value and an inflation hedge. This comparison is reinforced by historical trends, such as the launch of the gold ETF in 2004, which preceded an almost eight-year bull market in gold prices.
Previously, Bitcoin ETFs listed on CBOE Australia, the country’s secondary exchange, saw mixed success. It remains to be seen how these funds will perform on the main exchange.
Despite these positive developments, the broader crypto market, including Bitcoin, is experiencing significant volatility. Currently trading below $66,000, Bitcoin is struggling to reclaim its March peak. According to Coinglass, over the past 24 hours, market fluctuations have resulted in over $130 million in liquidations, including $98 million from long positions and $32 million from shorts.
FAQ on Australia’s Bitcoin ETF and Market Developments
What is the significance of VanEck receiving approval for a Bitcoin ETF on the ASX?
VanEck receiving approval for a Bitcoin ETF on the ASX is significant because it marks the entry of Bitcoin ETFs into the Australian market. This approval indicates regulatory acceptance and paves the way for other potential issuers. It also provides investors with a new avenue to gain exposure to Bitcoin within a regulated framework.
How has the launch of Bitcoin ETFs in other countries influenced the Australian market?
The launch of Bitcoin ETFs in the United States and Hong Kong has set a precedent and demonstrated strong investor interest in such products. In the US, Bitcoin ETFs have accumulated $57 billion in assets, while Hong Kong’s spot Bitcoin ETFs have attracted $1.09 billion. These figures indicate significant demand and provide a roadmap for Australia’s market, encouraging Australian companies to develop similar offerings.
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