📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Bitcoin ETF launches on Australia's main stock exchange for the first time

Published 06/19/2024, 11:00 PM
Updated 06/19/2024, 11:06 PM
© Reuters. Pedestrians are reflected in a window in front of a board displaying stock prices at the Australian Securities Exchange (ASX) in Sydney, Australia, February 9, 2018.   REUTERS/David Gray/ File Photo

By Lewis Jackson

SYDNEY (Reuters) - A bitcoin exchange-traded fund (ETF) launched on Australia's main stock market for the first time on Thursday as fund managers debut products to satisfy investors returning to cryptocurrency markets following a boom in prices.

The VanEck Bitcoin ETF launched with around A$990,000 ($660,429) in assets on the Australian Securities Exchange and is the culmination of over three years of negotiations with operator ASX.

The fund will not own bitcoin directly, but invest in the U.S.-listed VanEck Bitcoin Trust, which launched in January. VanEck's European subsidiary also manages 12 similar cryptocurrency funds.

Investors have poured billions of dollars into cryptocurrency ETFs in the U.S. after regulators approved several products in January. Hong Kong followed in April with the launch of six funds, although interest there has been more muted.

VanEck Australia said in March the greenlight from U.S. regulators triggered a jump in requests from brokers and financial advisers for similar products.

The price of bitcoin has almost tripled since 2023, although prices have stalled since a peak in March.

A competitor exchange in Australia run by the local subsidiary of CBOE Global Markets already hosts several bitcoin ETFs.

© Reuters. Pedestrians are reflected in a window in front of a board displaying stock prices at the Australian Securities Exchange (ASX) in Sydney, Australia, February 9, 2018.   REUTERS/David Gray/ File Photo

However, the VanEck Bitcoin ETF is the first fund to launch on the main exchange, where it will share the tickertape with some of the country's most well-known corporations such as BHP and Commonwealth Bank.

($1 = 1.4990 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.