Australia’s First Spot Bitcoin ETF to Launch on Cboe Australia

Australia is set to witness a groundbreaking moment in its financial landscape as the Monochrome Bitcoin ETF gears up for trading debut on the Cboe Australia exchange, scheduled for Tuesday. Marking a significant step in the mainstream acceptance of cryptocurrencies, this ETF, denoted as IBTC, offers investors regulated access to Bitcoin within a secure framework.

Monochrome Bitcoin ETF Details

The Monochrome Bitcoin ETF, managed by Monochrome Asset Management, will feature a management fee of 0.98%. This ETF aims to provide investors with a regulated avenue to access Bitcoin. The Australian Securities & Investments Commission (ASIC) oversees this framework, ensuring compliance with financial regulations and offering investor protection. Unlike other investment vehicles, this ETF will allow investors legal ownership of their Bitcoin (BTC) within the fund, with the option to request withdrawals.

This is the last day Australia doesn't have a spot Bitcoin ETF: Monochrome launching tomorrow!

Key difference for Monochrome over foreign ETFs is that it allows you actually withdraw your bitcoin

Long road to get launched: good luck!

— WizardofAus 丰 (@BTCSchellingPt) June 3, 2024

This ETF is unique as it is the first in Australia to hold Bitcoin directly, making Cboe the first exchange in the country to offer such a product. The Australian Securities Exchange (ASX) is also expected to approve spot Bitcoin ETFs by the end of the year.

A Secure and Transparent Investment

Monochrome’s collaboration with the crypto exchange Gemini as its Bitcoin custodian underscores the emphasis on security and transparency. The ETF is designed to mirror the market prices of Bitcoin, withstand manipulation, and be validated by market participants. This setup aims to attract both individual and institutional investors by providing a secure and regulated entry point into the crypto market.

Spot crypto ETFs, like this one, track the price of a specific cryptocurrency and invest portfolio funds directly into that asset. These funds are traded on public exchanges and can be held in standard brokerage accounts, making them accessible to a broader range of investors.

Global Context of Bitcoin ETF Adoption

The launch of Australia’s first spot Bitcoin ETF comes at a favourable time for the global cryptocurrency industry. Earlier this year, the U.S. Securities and Exchange Commission approved several spot Bitcoin ETFs to be listed on all registered national exchanges in the United States. This approval marked a significant step toward mainstream acceptance of Bitcoin as an investment asset.

In April, Hong Kong also conditionally authorized its first spot Bitcoin and Ethereum ETFs, positioning the city as a leader in crypto investment in Asia. Additionally, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling strong support for the cryptocurrency industry in the United States.