The first Bitcoin ETF on Australia’s main stock exchange traded 96,476 shares throughout the day.

The debut of Australia's first Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX) marked a significant milestone for the country’s cryptocurrency market. Issued by investment firm VanEck, the VanEck Bitcoin ETF (VBTC) experienced a modest first day of trading with a volume of $1.3 million, a stark contrast to the debut of spot Bitcoin ETFs in the United States, which collectively saw $4.5 billion in trading volume on their first day.

Market Size and Growth Potential

Despite the lower trading volume, VanEck remains optimistic about the future growth of VBTC, drawing parallels to the trajectory of Bitcoin ETFs in the United States. Jamie Hannah, VanEck’s deputy head of investments and capital markets, acknowledged the smaller size of the Australian market compared to the U.S. but highlighted the significant retail interest in Bitcoin exposure through the ASX.

First Day Performance

On its first trading day, VBTC opened at $13.24 and closed slightly higher at $13.34, with a total of 96,476 shares traded. The trading activity reflects a cautious yet positive start, suggesting a growing interest among retail and professional investors in accessing Bitcoin through a regulated and familiar investment vehicle.

Growing Demand for Regulated Bitcoin Investment

VanEck’s CEO for the Asia-Pacific region, Arian Neiron, emphasized the increasing demand for regulated Bitcoin investment options in Australia. He noted that VBTC simplifies Bitcoin investment by managing the complexities of acquiring, storing, and securing digital assets, making it more accessible to a broader audience, including financial advisors and investors.

Comparison with Other Bitcoin ETFs in Australia

While VBTC is the first spot Bitcoin ETF listed on ASX, it is not the first Bitcoin ETF in Australia. The Global X 21Shares Bitcoin ETF debuted in April 2022, and the Monochrome Bitcoin ETF recently started trading on Cboe Australia, the country's second-largest stock exchange. These products collectively indicate a growing acceptance and demand for Bitcoin ETFs in the Australian market.

Conclusion

The launch of the VanEck Bitcoin ETF on the ASX represents a pivotal development for cryptocurrency investment in Australia. Although the initial trading volume was modest compared to U.S. counterparts, the ETF's performance signals a burgeoning interest in Bitcoin investment through regulated platforms. With significant retail and professional investor interest, VBTC is poised for potential growth, contributing to the broader adoption of cryptocurrency investments in Australia.