Monochrome Asset Management Launches Australia’s First Spot Bitcoin ETF
Monochrome Asset Management is set to make history with the launch of Australia’s first spot Bitcoin exchange-traded fund (ETF) that holds Bitcoin directly. The Monochrome Bitcoin ETF (IBTC) will start trading on the Cboe Australia exchange on Tuesday, June 4, 2024, at 10:00 AEST (00:00 UTC). This marks a significant milestone for the Australian crypto market, providing investors with a regulated and transparent way to gain direct exposure to Bitcoin.
Direct Bitcoin Holdings: Monochrome’s ETF Debut
- The introduction of IBTC fills a gap in the market as the first ETF in Australia to hold Bitcoin directly.
- Australia currently has two exchange-traded products on Cboe Australia that offer exposure to spot crypto assets but 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 AFS licensing regime,” Monochrome said in a statement.
In March, Monochrome announced that IBTC would be the first to use the CME CF Bitcoin Reference Rate—Asia Pacific Variant (BRRAP) for benchmarking, providing a reliable pricing benchmark for Bitcoin. The partnership with crypto exchange Gemini ensures secure Bitcoin custody.
Regulatory Approval and Future Outlook
- Monochrome applied for a spot in the Bitcoin ETF in April 2024, with approval from ASIC, the Australian Securities & Investments Commission, and listing on Cboe Australia.
- ASX Ltd. considered approving its first spot Bitcoin ETFs, with indications of approvals by the end of 2024.
- BetaShares, DigitalX Ltd., and VanEck are also active in the Australian ETF market, with plans to launch spot Bitcoin and Ethereum ETFs.
The Australian Crypto Market’s Evolution
- This marks the second wave of spot Bitcoin ETF launches in Australia, following Cosmos Asset Management’s 2022 launch and delisting due to low demand.
- Australia’s pension system, valued at $2.5 trillion, has shown growing interest in cryptocurrencies, with pension funds allocating approximately $1 billion to digital assets.
- If Australian pension funds follow the trend of US counterparts in holding spot Bitcoin ETFs, it could further establish these products in the Australian market.
Hot Take: The Future of Spot Bitcoin ETFs in Australia
Australia’s first spot Bitcoin ETF marks a significant milestone in the country’s crypto market, providing investors with direct exposure to Bitcoin in a regulated and transparent manner. With regulatory approvals in place and growing interest from pension funds, the future looks promising for spot Bitcoin ETFs in Australia. The launch of Monochrome’s IBTC sets the stage for further growth and development in the Australian crypto landscape.
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