From cryptocurrency to private credit, Australia’s exchange-traded fund (ETF) landscape has grown in both size and complexity.
Here are some of the ETF launches in 2024 that got you clicking.
1. ‘Australia’s only spot bitcoin ETF’ commences trading on Cboe
In June, Monochrome Asset Management announced the official launch of the Monochrome Bitcoin ETF (IBTC) on Cboe.
Jeff Yew, CEO of Monochrome, has asserted that this is Australia’s first ETF to hold bitcoin directly. Previously, Global X claimed the “first to market” title for its Global X 21Shares Bitcoin ETF (Cboe: EBTC), insisting it is Australia’s only spot bitcoin ETF.
2. New front opens on the bitcoin ETF war: VanEck debuts VBTC
For much of 2024, fund managers were vying to become the first to list their spot bitcoin ETF offering.
In June, the VanEck Bitcoin ETF (ASX: VBTC) debuted on the ASX, marking the exchange’s inaugural bitcoin ETF. On the day of VBTC’s launch, Global X issued its own news, declaring the reduction of fees for both its spot bitcoin and Ethereum ETFs.
3. VanEck unveils Aussie-first global defence ETF
VanEck confirmed in 3Q24 that it would be launching the VanEck Global Defence ETF (DFND) on the ASX, offering exposure to a portfolio of defence companies across diverse sectors such as aerospace, communications, security software and training.
The launch came – and continues to be – at a time when rising geopolitical risks have become an increasing consideration for portfolio construction, with investors assessing how the changing global security environment impacts government expenditure and, ultimately, the deployment of capital.
4. Global X brings first dedicated AI ETF to Aussie shores
Global X provided investors with a late Easter present with the launch of the Global X Artificial Intelligence ETF (ASX: GXAI) on the ASX – the first dedicated AI ETF in Australia.
At the time, the ETF provider underscored the potential with the thematic, with forecasts suggesting the global market could increase to US$300 billion by 2026.
“AI is not a flash in the pan, it’s a structural shift which will change industries and life as we know it,” former CEO Evan Metcalf said at the time.
5. VanEck launches Aussie-first global listed private credit ETF
At the beginning of 2024, VanEck said it would launch its 40th local ETF, and also the country’s first global listed private credit ETF – the VanEck Global Listed Private Credit (AUD Hedged) ETF (ASX: LEND).
The asset class, VanEck noted, has historically been the “domain” of institutional and high-net-worth investors who have the capacity to invest with limited liquidity and price discovery.
