The first Australian Bitcoin ETF that invests directly in Bitcoin will start trading on Tuesday in what is seen as a major stepping stone in the country’s cryptocurrency market. Issued by Monochrome Asset Management, the ETF named Monochrome Bitcoin ETF or IBTC debuts on the Cboe Australia Exchange as the market opens on June 4.
Also read: Australia Set To Unveil First Spot Bitcoin ETFs by 2024
The planned launch of IBTC has attracted attention on social media platforms and anticipation in crypto communities. The spot Bitcoin ETF differs from other exchange-traded products because it invests and holds the actual Bitcoin.
JUST IN‼️ – Australia's first spot Bitcoin ETF, the Monochrome Bitcoin ETF, will debut on the CBOE Australia exchange tomorrow. 🇦🇺 #Bitcoin pic.twitter.com/oJra6DlVBz
— Swan (@Swan) June 3, 2024
IBTC reshapes Australia’s crypto markets
According to Monochrome Asset Management, IBTC will be the first ETF to hold Bitcoin directly in Australia. The country already has two exchange-traded products. However, unlike the Monochrome Bitcoin ETF, the two products do not hold Bitcoin directly.
“Before IBTC, Australian investors were only able to invest in ETFs that indirectly hold bitcoin, or through offshore bitcoin products, both of which don’t benefit from the investor protection rules under the directly held crypto asset Australian Financial Services Licensing (AFSL) licensing regime,” said the announcement.
Regions such as Hong Kong and Australia have started warming up to spot bitcoin ETFs after the US approved them beginning this year. Hong Kong officially approved its first batch of the products by the end of April as part of the city’s drive to become a global digital assets hub.
In Australia, businesses need approval from their regulator – the Australian Securities and Investments Commission (ASIC). The laws in Australia stipulate that issuers also get approval from the preferred exchange, in this case, the Cboe.
Monochrome wants to explore more products
Monochrome Asset Management applied with Australian regulators in April this year to broaden product offerings for investors in a safe space.
“This aligns with Monochrome’s investor protection-driven mission to offer compliant, straightforward pathways to participate in this transformative space.”
Monochrome Asset Management CEO Jeff Yew
Monochrome reportedly anticipated launching its product in July but got approval earlier than was anticipated; hence, the June 4 launch.
Also read: Australia`s first Bitcoin ETF gets the green light
Monochrome has also indicated that users could store their IBTC in offline storage devices, using crypto custody solutions that meet that country’s regulatory standards.
The asset manager is upbeat about the ETF, supported by interest and popularity in Bitcoin ETF products, and they are also looking at exploring an Ether ETF, which holds the asset directly like IBTC.
Update:
Global X has reached out to Cryptopolitan to suggest that they were the first with a spot Bitcoin ETF in Australia, which has been operating for the past two years. Known as Global X 21 Shares Bitcoin ETF (EBTC), the fund provides investors exposure to Bitcoin via a trust structure, which Global X claims is heavily scrutinized by both ASIC and Cboe. However, EBTC does not feature direct BTC holdings as IBTC by Monochrome.
Cryptopolitan reporting by Enacy Mapakame
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