VanEck, BetaShares Apply For Aussie Bitcoin ETFs

Financial services firms VanEck and BetaShares have filed with Australian regulators to launch exchange-traded funds backed by Bitcoin BTC/USD and other crypto assets.

What Happened: The Australian Financial Review reports that VanEck and BetaShares both filed with the Australian Securities Exchange (ASX) to launch the country’s first cryptocurrency-backed ETFs.

The regulator received multiple applications for the launch of such products after it dismissed speculation that it would oppose their launch.

VanEck Asia-Pacific chief executive Arian Neiron explained that the company is "exploring a Bitcoin ETF on ASX" as "the crypto asset movement becoming more mainstream" since he believes that ETFs are the “optimal delivery mechanism.”

Sydney-based BetaShares managing director Alex Vynokur also confirmed that the company filed for a crypto asset ETF with the ASX, but did not specify whether it was for a product backed by Bitcoin, a different crypto asset or even a basket of cryptocurrencies.

"There is significant demand from investors," he said, adding that an ETF is the right kind of product for this market. 

“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.”

Both VanEck and BetaShares have already secured custody contracts the prospective products. An ASX spokesperson refused to confirm the application, citing a policy of not discussing potential listings. 

“ASX is closely monitoring developments in relation to listed investments involving Bitcoin and other cryptocurrencies.”