First Bitcoin ETF to launch this week on ASX

VanEck will make history this week as the first investment manager to launch a Bitcoin ETF on the ASX.

The VanEck Bitcoin ETF (ASX: VBTC), which will list this Thursday, has come into being after an uptick in queries and requests from the adviser and broker community, following the US SEC approval of several Bitcoin ETFs. These US-domiciled ETFs, the largest of which is BlackRock's iShares Bitcoin Trust (IBIT), have amassed a market capitalisation of US$60 billion in just six months.

VanEck chief executive and managing director of Asia Pacific Arian Neiron said the firm is pleased to bring Bitcoin to the Australian market as a regulated financial product on the ASX.

"Notwithstanding that crypto investing is a polarising topic, we recognise Bitcoin is an emerging asset class that many advisers and investors want to access. We've developed a robust offering that we believe provides an opportunity for Bitcoin exposure using a regulated, transparent, and familiar investment vehicle," he said.

"VBTC also makes bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing, and securing digital assets is no longer necessary."

VBTC acts as a feeder fund, providing investors with exposure to Bitcoin by investing in the VanEck Bitcoin Trust (HODL) - a US ETF that issues common shares of beneficial interest that are listed on Cboe.

However, Monochrome Asset Management chief executive Jeff Yew told Financial Standard that its recently launched Bitcoin ETF (CBOE: IBTC), available solely on Cboe Australia, differentiates itself from VanEck's product by directly holding Bitcoin. He said this ensures "real asset ownership" for investors, unlike indirect feeder funds, which only offer exposure to the spot price of Bitcoin.

Yew added that true Bitcoin ETFs hold the asset itself, which should allow investors to take delivery of the Bitcoin.

He said that IBTC meets this standard, unlike indirect feeder ETFs that claim "direct exposure."

Debates aside, research by VanEck has found 76.2% of advisers had clients inquiring about Bitcoin.

Additionally, 33% of advisers said they would add a Bitcoin ETF to client portfolios if it was available on the ASX.