Trading of the VanEck Bitcoin ETF (ASX: VBTC) exceeded $3 million on its listing day, with total flows into the fund reaching $18 million since 20 June.
Following this “remarkable” response from investors, the fund manager said, effective 12 July, it is reducing VBTC’s annual management fee to 0.49 per cent.
“While still polarising, bitcoin is no longer on the fringes and is evolving into the mainstream,” said Arian Neiron, CEO and managing director.
“We are in the midst of a paradigm shift following the ASX’s approval with a flurry of bitcoin ETFs listing, and likely more to come.”
The VBTC is the ASX’s inaugural bitcoin ETF. On the occasion of its launch, the general manager of investment products and strategy at the ASX, Andrew Campion, said in a statement that the exchange had been working on bringing a crypto asset ETF to market for a number of years.
This included establishing a new category of permissible underlying assets for ETFs in August 2022, which includes bitcoin and ether.
“While it has been possible to trade bitcoin via crypto exchanges, trading units with exposure to bitcoin via an ETF on an exchange like ASX means you’re able to buy and sell those units through a traditional brokerage account, simplifying the process and opening the opportunity to more Australians,” Campion said.
“As the demand for digital assets continues to grow, we are proud to offer a regulated avenue for Australian investors to access the crypto asset market.”
Despite being the first to list on the ASX, VanEck’s VBTC is no longer the only bitcoin ETF on the exchange, with the launch of the DigitalX Bitcoin ETF (ASX: BTXX) today.
Earlier this week, the microcap said it has received approval to list its product on the ASX in what was described as a “watershed moment” for the firm.
Coincidentally, or not, VanEck’s fee reduction announcement has coincided with the launch of BTXX, a move that mirrors Global X’s decision to lower fees for its spot bitcoin ETF on the day VBTC launched last month.
InvestorDaily previously covered the competition for Australia’s first bitcoin ETF, with each fund manager asserting their claim to the title.
Global X was first to enter the market back in 2022, when it listed both a bitcoin ETF and an Ethereum ETF on Cboe. Monochrome was next, listing a bitcoin ETF (IBTC) on Cboe in June, a few weeks before VanEck announced it was listing its product VBTC on the ASX.
DigitalX is the latest firm to join this group and the latest to assert that it’s breaking new ground, saying it is the “only ASX-listed locally-domiciled ETF offering direct exposure to bitcoin”.
VanEck, however, claims it was the first in Australia to lodge a submission for a bitcoin ETF while also becoming the first to successfully list on the ASX.
“We have been engaged with bringing a spot bitcoin ETF to ASX since early 2021. We were the first fund manager to work with the regulator and exchange on the mechanics, and the first to formally lodge a submission for a bitcoin ETF to ASX. We resubmitted our bitcoin ETF application to the ASX in February this year. We are known for our innovation in funds management and plan on bringing the first bitcoin ETF to ASX investors,” Neiron explained earlier this year.
Australia now has four spot bitcoin ETFs, with slightly differing structures.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
