Australia’s first spot Bitcoin ETF, known as IBTC, will be launched by Monochrome on Tuesday. This marks a significant milestone in the Australian cryptocurrency market as it provides a secure and compliant investment option that was previously lacking. The ETF, which is offered by Monochrome Asset Management, will be available for trading on the Cboe Australia exchange. This development has been praised by blockchain researcher Collin Brown, who believes it will establish a new standard for crypto investment in Australia.
Monochrome’s ETF is groundbreaking because it allows investors in Australia to directly own BTC. Previously, Australian investors could only invest in ETFs that indirectly held bitcoin or through offshore bitcoin products, which did not offer the same level of investor protection as the directly held crypto asset under the Australian Financial Services Licensing (AFSL) licensing environment. 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 changes this situation by offering Australian investors a safer and more regulated option.
In April 2024, Monochrome applied for a spot bitcoin ETF following the approval of spot bitcoin ETFs in the United States in January of that 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 in April. In order to launch IBTC, Monochrome had to obtain regulatory approvals from the Australian Securities & Investments Commission (ASIC) and Cboe Australia. Monochrome successfully obtained ASIC clearance for its product, a crucial step in the launch process.
CoinDesk has reached out to Cboe Australia for comment but has not received a response yet. Jeff Yew, the 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 crypto space.
As of the time of writing, the price of bitcoin is approximately $69,223.22, representing a 1.73% increase in the last 24 hours. However, over the past 7 days, it has experienced a bearish trend, falling by 0.94%.
In late April, CNF reported on the positive response that the Bitcoin Spot ETF received from the Australian Main Board, indicating strong institutional support for this innovative financial product.
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