Australia’s first spot Bitcoin ETF debuts tomorrow, offering direct BTC exposure. Monochrome’s IBTC ETF launches on Cboe, marking a major regulatory milestone.
Australia’s first spot Bitcoin exchange-traded fund (ETF) will debut tomorrow, marking the country’s entry into the cryptocurrency investment space. Pending unforeseen delays, trading for the Bitcoin ETF (IBTC) from Monochrome Asset Management will start on the Cboe platform on June 4. With this milestone, Australia has joined the rest of the world in following the US, where spot BTC ETFs were approved earlier this year.
Spot Bitcoin ETFs Are Also Introduced in Australia
Leading this launch is Australia-based company Monochrome Asset Management. The IBTC ETF will have a 0.98% management fee and trade with the symbol IBTC. By tracking the CME CF Bitcoin Reference Rate index, which links its value to the current price, the ETF is intended to provide investors with direct exposure to Bitcoin. The technological difficulties and complexity involved in buying and maintaining real Bitcoin are removed by using this method.
Before this launch, Australian investors could only obtain Bitcoin indirectly by investing in local exchange-traded funds (ETFs) or offshore products that did not hold actual Bitcoin. According to Monochrome Asset Management, “Before IBTC, investors could only invest in ETFs that indirectly hold Bitcoin or through offshore Bitcoin products, neither of which are subject to the investor protection regulations under the Australian Financial Services Licensing (AFSL) licensing regime for directly held crypto assets.”
With the Australian Securities & Investments Commission’s (ASIC) clearance and subsequent listing on Cboe, the debut of IBTC marks a significant regulatory milestone. This puts Cboe ahead of the more extensive Australian Securities Exchange (ASX), which is also anticipated to approve spot BTC ETFs by year’s end as the first Australian exchange to launch a BTC ETF.
IBTC was approved quickly, which indicates the desire to keep up with the rest of the world regarding ETFs related to cryptocurrencies. The speedy response to Monochrome Asset Management’s April 2024 ETF application demonstrates the country’s regulatory flexibility in the rapidly developing crypto asset market.
IBTC’s introduction capitalizes on the rising demand for regulated investment vehicles. Earlier this year, the US government’s approval of spot BTC ETFs sparked significant inflows from institutional and individual investors, indicating a broader recognition of BTC as a respectable asset class. Other countries have seen a similar trend, with regulated Bitcoin ETFs introduced in Hong Kong, Canada, Brazil, the UK, and Europe.
The country’s entry into this sector demonstrates its dedication to offering accessible and safe Bitcoin investing choices within a regulated environment. IBTC provides a new degree of investor safety and accessibility as Australia’s first and only ETF to hold Bitcoin directly. This is intended to draw in a wide variety of investors.
