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Kryptowaluty

Bitcoin ETF listed on Australian exchange records $1.3 million in proceeds on first day alone

The high level of investment on the first day of trading underscores the growing demand for cryptocurrency-related investment products in Australia and investor confidence.

Date: 2024-06-20 Author: Łukasz Michałek
Bitcoin ETF listed on Australian exchange records $1.3 million in proceeds on first day alone

Investment management firm VanEck noted that its first bitcoin fund (ETF) listed on the Australian Securities Exchange (ASX) attracted $1.3 million on its first day of trading.

Trading under the exchange symbol “VBTC,” the ETF launched with assets worth 982,85 thousand Australian dollars ($655.56) and charges a fee of 0.59%. This is the first Bitcoin ETF to be launched on a major exchange in Australia.

The ETF launched by VanEck allows investors to gain direct exposure to Bitcoin without having to purchase the cryptocurrency itself.

To put this into perspective, BlackRock ‘s Bitcoin ETF trading under the ticker “IBIT” recorded a huge first day trading volume of $1 billion in January.

“The $1.3 million is a drop in the ocean,” – Laurent Kssis, an independent board member of Issuance Swiss AG, said.

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“The previous exposure to bitcoins managed to attract larger inflows for a short period of time when they were listed on the exchange, but everything follows the naming convention. The product is now an ETF, which provides greater transparency and exposure to the underlying assets, not to mention lower management fees,” Kssis said.

The ETF veteran said it is a good solution for institutional investors who yearn for transparency and better products, although ultimately the exposure remains the same.

Australia got its Bitcoin and Ether ETFs back in 2022. Cosmos Asset Management and 21Shares AG, in partnership with ETF Securities, listed cryptocurrency ETFs on the Chicago Board Options Exchange (CBOE).

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ASIC takes a cautious approach

The launch follows extensive deliberations and approval processes by the Australian Securities and Investments Commission (ASIC), underscoring the regulator’ s cautious approach to integrating digital assets into the traditional financial system.

The launch of a bitcoin ETF in Australia is another critical step in bridging the gap between traditional finance and the burgeoning cryptocurrency sector.

The difference between bitcoin ETFs is that the products will directly store bitcoins. On the other hand, derivative-based cryptocurrency ETFs, which are already traded in Australia, use financial instruments such as futures contracts to replicate bitcoin prices.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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