Australia's ASX Primed for Bitcoin ETF Launch, All Eyes on VanEck

By: Eva Baxter

The Australian Securities Exchange (ASX), the primary equity exchange in Australia, is reportedly nearing approval for the launch of spot Bitcoin exchange-traded funds (ETFs). The development is a part of a growing global trend of asset diversification using digital currencies. The move comes after major nations such as the United States and Hong Kong launched similar ETFs allowing their citizens to invest in Bitcoin.

A significant player in this development is VanEck, along with other firms such as BetaShares and DigitalX. There's a strong expectation that the new ETFs could get a green light by the end of this year. Remarkably, this would mark Australia's second attempt at introducing such products, given the underwhelming response to the first Bitcoin ETFs launched by Global X 21Shares and Cosmos Asset Management in 2022.

Bitcoin ETFs have skyrocketed in popularity this year, capturing an impressive $53 billion under management. However, recent weeks have seen a slump in inflows suggesting a possible cooling interest among investors. But, amid this uncertain atmosphere, many are optimistic of a potential resurgence in demand. In fact, Arian Neiron, CEO and Managing Director of VanEck Asia Pacific, has reported a significant uptick in enquiries, suggesting that investors are increasingly ready to explore Bitcoin ETFs offered on the ASX.

The approval of Bitcoin ETFs on the ASX, which represents 90% of Australia's equity trading, could potentially reiterate the strengthening global trend of digital asset inclusion and investment diversification.