Australia is poised for significant developments in the cryptocurrency market. VanEck Bitcoin ETF will begin trading on the Australian Stock Exchange (ASX) from June 20th.
An exchange-traded fund (ETF) investing directly in Bitcoin has been listed for the first time on Australia's major stock market.
Bitcoin struggles despite ETF development in Australia
The Australian Securities Exchange (ASX), which handles the majority of Australian share trading, confirmed that VanEck is currently the only approved applicant. However, discussions are ongoing with other potential issuers.
“Despite cryptocurrency investing being a polarizing topic, we know that Bitcoin is an emerging asset class that many advisors and investors are eager to access,” said Arian Neiron, CEO of VanEck’s Asia Pacific region.
The cryptocurrency community has high hopes for Australia's entry into the market, following in the footsteps of the United States and Hong Kong, which launched similar products earlier this year. When the Bitcoin ETF was launched in the United States, it attracted considerable attention, raising $57 billion. In contrast , Hong Kong's spot Bitcoin ETF attracted only $1.09 billion in assets.
Read more: How to Trade Bitcoin ETF: A Step-by-Step Approach
Other Australian companies are also preparing to list on the ASX, including Sydney-based BetaShares Holdings and DigitalX. A BetaShares spokesperson confirmed that the company is working diligently to launch Bitcoin and Ethereum spot funds in the near future.
Analysts are comparing Bitcoin to gold, citing the cryptocurrency's role as a store of value and inflation hedge. This view is supported by historical trends, such as the launch of gold ETFs in 2004, before the start of a nearly eight-year bull market in gold prices.
Previously , Australia's second largest exchange, CBOE Australia, listed a Bitcoin ETF with great success. It remains to be seen how this fund will perform on major exchanges.
Despite the positive developments, the broader cryptocurrency market, including Bitcoin, is experiencing significant volatility. Bitcoin currently trades below $66,000 and is struggling to recover its March highs.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
According to data from Coinglass, market volatility has resulted in more than $130 million in liquidations in the past 24 hours. This includes $98 million in long positions and $32 million in short positions.
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