The Australian exchange-traded funds (ETFs) market has surged from strength to strength in the past 12 months reaching a total value of just under $200 billion, aided by a strong showing from bitcoin-linked funds.
As of March 31, the ETF market was at $197 billion, an increase of almost 38 per cent over the past year and almost twice the market’s value three years ago.
The best-performing Australian-listed ETFs in the 12 months to March 31 were those with exposure to crypto.Credit: AP
The increase in the value of the ETF market reflects not only the inflows of money by investors but also asset value movements and unlisted managed funds that have converted into ETFs.
The best-performing Australian-listed ETF over the period was the Global X 21Shares Bitcoin ETF, which returned 168.3 per cent, as the bitcoin price rose in response to the launch of US-listed bitcoin ETFs earlier this year.
Bitcoin is about to experience a “halving” event, which significantly reduces the supply of new bitcoin – another likely reason for its strong performance.
Marc Jocum, product and investment strategist at Global X, which provided the figures, says there is plenty of potential for the Australian-listed ETF market to maintain its rapid growth, as the local market is relatively immature.
Global X’s Marc Jocum estimates the local ETF market could reach $1 trillion by 2030.
“In the United States, the listed ETF market accounts for about a quarter of the value of all collective investments; whereas, in Australia, it accounts for only 5 per cent,” Jocum says.
In Jocum’s estimation, the local ETF market could reach $1 trillion by 2030 if the market continues to grow at the same pace, as investors seek out low-cost investments, whose units are bought and sold just like shares in listed companies.
Eager investors push Australian ETF market to near $200 billion
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16.04.2024
The Australian exchange-traded funds (ETFs) market has surged from strength to strength in the past 12 months reaching a total value of just under $200 billion, aided by a strong showing from bitcoin-linked funds.
As of March 31, the ETF market was at $197 billion, an increase of almost 38 per cent over the past year and almost twice the market’s value three years ago.
The best-performing Australian-listed ETFs in the 12 months to March 31 were........
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