Australia to Launch Premier Spot Bitcoin ETF with Direct Holdings

Monochrome Asset Management, an Australian firm, is set to introduce its Monochrome Bitcoin Exchange-Traded Fund (ETF) (IBTC) on the Cboe Australia exchange this Tuesday, as reported to CoinDesk.

This ETF is distinguished as the first in Australia to directly hold Bitcoin.

“Prior to IBTC, Australian investors had the option to invest in ETFs that held Bitcoin indirectly or through international Bitcoin products. Neither of these options are covered by the investor protection regulations associated with the direct crypto asset holding under the Australian Financial Services Licensing (AFSL) framework,” stated the official announcement.

While there are already two exchange-traded products on Cboe Australia that offer exposure to spot cryptocurrency assets, they do not directly contain Bitcoin.

Monochrome submitted an application for a spot Bitcoin (BTC) ETF in April 2024. Following the U.S. sanctioning spot Bitcoin ETFs in January 2024, regions like Hong Kong and Australia have demonstrated a willingness to embrace such products. By April’s end, Hong Kong had granted approval to the inaugural group of crypto-related spot ETFs, marking a milestone for the city in its quest to become a preeminent hub for digital assets.

In Australia, companies must secure the nod from the regulatory body, the Australian Securities & Investments Commission (ASIC), followed by the exchange that will list the product, in this instance, Cboe Australia. Monochrome had previously received ASIC’s endorsement for this offering.

Cboe Australia has yet to issue a response to CoinDesk’s inquiry for comments.

Jeff Yew, CEO of Monochrome Asset Management, expressed, “This is in harmony with Monochrome’s commitment to investor protection, aiming to provide safe, compliant, and clear avenues for engaging with this revolutionary domain.”

Sentiment: Positive