First Bitcoin ETF Makes $1.3M Inflows on First Day of Trading in Australia
Investment management firm VanEck has successfully launched its first spot bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX), attracting $1.3 million in inflows on its first day of trading. The ETF, trading under the ticker “VBTC,” debuted with assets worth Aus $982.85K ($655.56) and charges a fee of 0.59%. This marks the first Bitcoin ETF to be listed on the main exchange in Australia. The VanEck ETF allows investors to gain direct exposure to Bitcoin without the need to purchase the cryptocurrency itself.
In comparison, BlackRock’s spot bitcoin ETF, trading under the ticker “IBIT,” saw a massive trading volume of $1 billion on its first day back in January. However, Laurent Kssis, an independent board member of Issuance Swiss AG, downplayed the $1.3 million inflow, stating that it is just a drop in the sea. Kssis noted that previous bitcoin exposure products attracted larger inflows for a short time when they were listed last year, but the naming convention plays a significant role. He also highlighted that the new VanEck ETF provides more transparency, clarity, and lower management fees.
Australia previously introduced Bitcoin and Ether ETFs in 2022, with Cosmos Asset Management and 21Shares AG listing crypto ETFs in partnership with ETF Securities on the Chicago Board Options Exchange (CBOE). The launch of the spot bitcoin ETF in Australia follows extensive deliberation and approval processes by the Australian Securities and Investments Commission (ASIC), showcasing the regulatory body’s cautious approach to integrating digital assets into the traditional financial system. This development further bridges the gap between traditional finance and the growing crypto sector.
It is important to note that spot bitcoin ETFs directly hold bitcoins, while derivatives-based crypto ETFs currently trading in Australia use financial instruments such as futures contracts to replicate Bitcoin’s prices.
