Bitrabo Editorial
Australia is stepping into the world of crypto investment by launching its inaugural spot Bitcoin exchange-traded fund (ETF) tomorrow. Monochrome Asset Management’s Bitcoin ETF (IBTC) is scheduled to start trading on the Cboe Australia exchange on June 4th. This move reflects Australia’s alignment with global trends, particularly in the wake of the US’s recent approval of spot Bitcoin ETFs.
Australia Also Introduces Spot Bitcoin ETFs
Monochrome Asset Management, an Australia-based company, is spearheading this launch. The IBTC ETF, trading under the ticker IBTC, will have a management fee of 0.98%. It provides investors with direct exposure to Bitcoin, tracking the CME CF Bitcoin Reference Rate index, thereby linking its value directly to the spot price. This approach simplifies the process of investing in and managing actual Bitcoin.
Prior to this development, Australian investors could only access Bitcoin indirectly through offshore products or local ETFs that did not possess Bitcoin directly. Monochrome Asset Management highlighted, “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.”
The approval of IBTC marks a significant regulatory milestone after obtaining the green light from the Australian Securities & Investments Commission (ASIC) and being listed on Cboe Australia. This milestone puts Cboe as the first Australian exchange to list a BTC ETF, ahead of the larger Australian Securities Exchange (ASX), which is also anticipated to approve spot BTC ETFs by year-end.
The approval process for IBTC was relatively speedy, showcasing Australia’s commitment to keeping up with the global integration of crypto-related ETFs. Monochrome Asset Management applied for the ETF in April 2024, with the quick approval underscoring the nation’s regulatory adaptability in the evolving crypto domain.
The launch of IBTC taps into the increasing interest in regulated investment vehicles. The approval of spot BTC ETFs in the US earlier this year led to significant inflows from both institutional and retail investors, indicating a broader recognition of BTC as a credible asset class. This trend has been reflected in various regions globally, including Canada, Brazil, the UK, Europe, and Hong Kong, which have all witnessed the introduction of regulated Bitcoin ETFs.
Australia’s venture into this sector underscores its commitment to offering secure and convenient Bitcoin investment alternatives under a regulated framework. As Australia’s first and only ETF directly holding BTC, IBTC provides enhanced investor protection and accessibility, likely to appeal to a diverse investor base.
Currently, BTC is trading at $69,419.