Global X Report: Crypto Pushed Australian ETF Market to New Highs

By Aaron Feuerstein October 18, 2024 In ASX, Australia, ETF

In 2024, Australia’s ETF market value hit $226.6 billion, growing by 48.6%.
Investors favoured low-cost ETFs like BetaShares Australia 200 and Vanguard Australian Shares Index, each attracting about $2 billion.
Crypto funds outperformed, with the EBTC leading growth at 118.1%, underscoring increasing risk appetite among investors.
Australians now have several options when looking to invest in crypto assets, whether on the ASX or Cboe.

2024 marks the year when the Australian exchange-traded fund (ETF) market reached the $200 billion mark for the first time. Traditionally bond ETFs have dominated the market, but a report by Global X highlights investors’ increased appetite for so-called risk on investments.

The local ETF market now features 394 products and grew by over 48.6% in the past year, reaching $226.6 billion.

GlobalX revealed that Australian investors are still favouring low-cost, diversified ETFs, with significant inflows into BetaShares Australia 200 ETF and Vanguard Australian Shares Index ETF, each receiving about $2 billion.

Crypto Fund Top Performers Down Under

Interestingly, the report also reveals that – much like their counterparts in the US – crypto funds take the top spot, performance-wise. Global X’s EBTC fund, the 21Shares Bitcoin ETF, grew by 118.1%, making it the top Australian ETF. Betashares’ Crypto Innovators fund made the third spot, growing by 76.7%, just 0.1% shy of the Betashares Geared US Equity Fund.

The report attributes the outperformance of crypto ETFs to a higher risk appetite by investors amid a globally favourable interest environment – although Australia has yet to see any interest rate easing.

As share markets across the globe continue to reach all-time highs, funds that had magnified exposure to these markets, such as leverage ETFs, also made it into the top-performing funds over the past year.

Global X

Australian Crypto ETF Landscape Heats Up

And the market for crypto funds in Australia gets only more competitive, which is a good thing for consumers.

Locals have access to Bitcoin ETFs on the ASX via the DigitalX Bitcoin fund BTXX and VanEck’s VBTC fund.

The Cboe lists Monochrome’s IBTC Bitcoin fund, the IETH Ethereum fund, and – as mentioned – Global X’s 21 Shares EBTC for Bitcoin and EETH for Ethereum.

These funds provide access to Bitcoin and Ethereum in a well-regulated way and investors do not need to worry about losing their keys.

Given their popularity, it’s likely that more asset managers will consider launching similar products, increasing consumer choice.

Author

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.