Australia’s first direct-holding spot Bitcoin ETF, IBTC, will be launched by Monochrome on the Cboe Australia exchange. This marks a significant milestone in the Australian cryptocurrency market. The ETF, managed by Monochrome Asset Management, will allow investors to securely and compliantly invest in Bitcoin, addressing a gap in the market.
Blockchain researcher Collin Brown has praised this development, stating that it will establish a new standard for crypto investment in Australia.
Monochrome’s ETF is groundbreaking as it is the only one in Australia to directly own Bitcoin. Previously, Australian investors could only access ETFs that indirectly held Bitcoin or offshore Bitcoin products, which lacked the investor protection regulations provided by the Australian Financial Services Licensing (AFSL) environment for directly held crypto assets.
While there are already two Cboe Australia exchange-traded products that offer exposure to spot cryptocurrency assets, they do not actually own Bitcoin. Monochrome’s ETF provides Australian investors with a safer and more regulated investment option.
In April 2024, Monochrome applied for the spot Bitcoin ETF after the United States approved similar products in January of the same year. Hong Kong and Australia have also shown openness to these products, with Hong Kong approving its first batch of spot ETFs linked to cryptocurrencies by the end of April.
To launch IBTC, Monochrome had to obtain regulatory approvals from the Australian Securities & Investments Commission (ASIC) and Cboe Australia, the exchange where the ETF will be listed. Monochrome successfully obtained ASIC clearance for its product, an important milestone in the launch process.
CoinDesk has reached out to Cboe Australia for comment, but has not received a response yet. Jeff Yew, CEO of Monochrome Asset Management, stated that the launch of IBTC aligns with the company’s mission to provide secure and compliant pathways for investors to participate in the transformative space of cryptocurrencies.
As of the time of writing, the price of Bitcoin is approximately $69,223.22, showing a 1.73% increase in the last 24 hours. However, over the past 7 days, Bitcoin has experienced a bearish trend, declining by 0.94%.
The introduction of Australia’s first spot Bitcoin ETF has garnered significant institutional support, further highlighting the growing interest in this innovative financial product.
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