BetaShares and VanEck File Application For Aussie ETF

BetaShares and VanEck File Application For Aussie ETF

By Sam Grant - min read

Aussie ETF manager BetaShares and global investment firm VanEck have both filed for Bitcoin ETFs

Two fund management firms, VanEck and BetaShares, have separately filed submissions for an Exchange Traded Fund with the Australian Securities Exchange. The corporate regulator’s reputation has changed after accepting the formal applications. There were speculations in March that the Australian Securities Exchange was opposed to ETF products.

The New York-headquartered investment company already listed exchange-traded notes backed by the two leading cryptocurrencies on a trading platform by Germany’s Deutsche Börse. The approval of its Bitcoin ETF application in the US was recently delayed until June by the Securities and Exchange Commission.

Earlier this week, VanEck’s Asia-Pacific outpost chief, Arian Neiron, said, “With the crypto asset movement becoming more mainstream and extending on our global leadership in offering investors opportunities in digital assets, we are pleased to advise that we are exploring a Bitcoin ETF on ASX,”

He also added that exploring the opportunity of a crypto-backed ETF would go a long way in democratising crypto assets. The regulator revealed that many other fund managers eager to launch ETFs had also lodged their applications.

BetaShares filed a similar application like VanEck but didn’t divulge details of the product. It is not yet clear if the provider is targeting a Bitcoin product or is looking for a broader one backed by cryptocurrencies. Alex Vynokur, the Managing director at the company, pointed to market demand as an indication the country is ready for an introduction for ETF products.

“From our perspective, a regulated structure of an ETF is the more appropriate structure for a significant number of investors, rather [than] buying Bitcoin or other cryptocurrencies on unregulated exchanges,” he noted.

The Australian Securities Exchange, on its end, hasn’t disclosed or made remarks regarding the submitted applications. It, however, acknowledged that it was keeping track of the situation in the industry. The development comes as a Business Insider Australia report claims that wealthy domestic family offices are flocking into digital assets.

The report revealed that the blockchain firm DigitalX has been instrumental in helping family offices make their entry into the crypto sector. The firm’s Executive director, Leigh Travers, noted that there had been an investor shift from traditional assets, such as Gold to Bitcoin.