ASX Debut for GYG and VanEck’s Bitcoin ETF: Market Updates and Expert Insights

The ASX 200 is poised to edge slightly lower when the market opens on Thursday, with Wall Street out for the Juneteenth national holiday. At 8am AEST, the ASX200 futures contract was pointing down by -0.2%.

Overnight, stock markets in Europe were generally lower as traders looked for new catalysts to sustain the recent tech-driven rally. The benchmark European Stoxx 600 index slipped -0.2% following two consecutive days of gains. The French CAC40 also fell by -0.77%, while the UK’s FTSE 100 closed +0.17% higher.

Investors kept an eye on developments in France after the European Union criticised it for not adhering to the bloc’s deficit and debt rules. The French 10-year bond yields jumped by 4 basis points.

The Bank of England will announce its interest rate decision tonight. Despite inflation dropping to the target level of 2%, the market believes a rate cut might not be considered until August.

Meanwhile, for the first time in nearly two years, the London Stock Exchange has become the biggest in Europe. The total value of companies listed on the LSE reached US$3.18 trillion earlier this week, surpassing the US$3.13 trillion total of companies listed in Paris, according to Bloomberg data. The French market has struggled due to election-related uncertainty, while the UK market is bouncing back after years of underperformance.

Elsewhere, oil prices dipped on news that US crude stockpiles grew by 2.26 million barrels last week, marking the third consecutive increase. Before last night, crude prices were on the rise following reassurances from OPEC+ that any increase in the cartel’s production output will be contingent on market conditions.

Australian Mexican food retailer GYG is set to debut on the ASX today with a share price of $22 and an initial market cap of approximately $2.2 billion. While analysts have expressed doubt about the aggressive IPO price, the company contends that it is justified by its strategy to open 30 new restaurants by FY25, with plans to increase this number to 40 annually within the next five years.

Another new listing today is the VanEck Bitcoin ETF, the first ever spot Bitcoin ETF in Australia. The listing follows the success of US Bitcoin ETFs, which have collectively amassed US$57 billion this year, introduced by prominent fundies such as BlackRock, Fidelity, and VanEck. The company aims to provide Australian investors with a gateway to the crypto market.

Sydney-based BetaShares and DigitalX, both local players, are reportedly also preparing to debut their Bitcoin ETFs on the ASX, signaling a growing interest in cryptocurrencies among Australian investors.

Gold price traded flattish at US$2,329.88 an ounce. Oil prices were down around -0.25%, with Brent crude now trading at US$85.05 a barrel. The benchmark 10-year US Treasury yield remained at 4.23% as the bond market did not trade due to US holidays. The Aussie dollar was up by +0.2% to 66.72 cents. The iron ore price lifted a further +1% to US$107.30 a tonne. Bitcoin meanwhile tumbled by -0.2% last 24 hours to US$64,945 while Ethereum was up +2.5% to US$3,566.