The landscape of bitcoin ETFs has evolved significantly in recent years, with a options available in many countries, including the United States and Australia.

US-Based Bitcoin ETFs

When the US Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs earlier this year, it opened the floodgates for institutional and retail investors seeking bitcoin exposure through traditional investment vehicles.

Within a day of listing, these bitcoin ETFs collectively saw over $US4 billion in inflows, shattering previous records for ETF debuts. As the weeks progressed, many individual funds continued to break records. For context, over the last 30 years, 5,535 ETFs have been launched. None have seen numbers as impressive as those offered by companies like BlackRock and Fidelity.

Within one month of trading, Fidelity’s FBTC had gathered almost $US3.5 billion in assets under management (AUM), while BlackRock’s IBIT had attracted over $US4 billion. To put this in perspective, the first gold ETF accumulated $US1.2 billion in its first month, and the previous record holder for fastest inflows was BlackRock’s Climate Conscious Fund, launched in August 2023, which collected $2.2 billion in its first month.

These figures underscore the appetite for bitcoin exposure through regulated, traditional investment vehicles. While these US-based ETFs are not directly accessible to Australian retail investors, they signify a global shift towards mainstream acceptance of bitcoin as an investment asset.

Australian Bitcoin ETFs

The global wave of bitcoin ETF approvals has reached Australian shores, with two notable offerings now available to local investors.

ASX

On July 13, 2024, the Australian Securities Exchange (ASX) listed its first spot-bitcoin ETF, marking a significant milestone for cryptocurrency investment in Australia. The VanEck bitcoin ETF (VBTC) allows Australians to invest in bitcoin through exposure to the company’s US equivalent.

VBTC is structured as a feeder fund that provides exposure to bitcoin by investing in VanEck’s bitcoin Trust (HODL), a US ETF listed on Cboe.

Cboe

Australia’s first bitcoin spot ETF, Global X 21shares bitcoin ETF (EBTC), launched on Cboe Australia (formerly Chi-X) in May 2022.

It’s worth noting that while the ASX has only recently listed its first bitcoin ETF, Cboe Australia has been hosting such products for over two years. Monochrome bitcoin ETF (IBTC) also recently went live on June 4, 2024, and holds bitcoin directly.

The introduction of these ETFs in Australia on the ASX and Cboe provides Australian investors with multiple options for gaining exposure to bitcoin through regulated, exchange-traded products that cater to different investment preferences and strategies.