The First Bitcoin ETF Spot Officially Launched in Australia

Monochrome Asset Management, an Australian investment firm, is set to introduce Australia’s first spot Bitcoin exchange-traded fund (ETF) on Tuesday, May 4, 2024.

Azcnews The First Bitcoin Etf Spot Officially Launched In Australia

The Monochrome Bitcoin ETF (IBTC) will directly hold BTC in Australia. The ETF is scheduled to be listed for trading on the Cboe Australia exchange on June 4. Monochrome’s investment strategy for bitcoin will be strictly passive, avoiding derivatives, leverage, or short selling, as stated on their website.

Monochrome’s IBTC Launch in Australia In April, Monochrome applied to launch IBTC, capitalizing on the growing interest in spot Bitcoin ETFs beyond the U.S. market. Previously, Monochrome received approval to launch a spot Bitcoin ETF in August 2022, providing investors with direct exposure to BTC, ether, and other cryptocurrencies.

Monochrome Asset Management’s Innovative Approach to Bitcoin ETFs in Australia

In recent years, various firms have introduced Bitcoin exchange-traded funds (ETFs) that indirectly hold BTC or gain exposure to the digital asset through offshore products. However, Monochrome Asset Management is taking a unique approach with its IBTC fund.

  1. Direct Bitcoin Exposure:
    • Monochrome’s IBTC will be the first ETF in Australia to directly hold Bitcoin. Unlike other funds that rely on derivatives or offshore structures, IBTC aims to provide investors with a straightforward way to access the cryptocurrency market.
  2. Investor Protection:
    • Monochrome CEO Jeff Yew, formerly the chief executive of Binance Australia, highlighted an important distinction. While other funds lack the investor protection rules associated with directly held crypto assets under the Australian Financial Services (AFS) licensing regime, IBTC operates under a new crypto licensing category introduced in 2021.
  3. Secure Custody Solution:
    • To meet regulatory standards, Monochrome will use a custody solution for IBTC holdings. Notably, these holdings will be kept offline, ensuring security by avoiding internet connectivity.
  4. Global Trend:
    • The launch of IBTC aligns with a broader trend. Several countries are approving spot Bitcoin ETFs, allowing investors direct exposure to the cryptocurrency. The success of the initial wave of ETFs in the United States has sparked interest worldwide.
    • Hong Kong, for instance, saw its first spot Bitcoin ETFs debut on April 30, and analysts anticipate similar product approvals in other regions soon.

Related: Bitcoin Trading at $69,000 as Volume Drops to Historic Lows

In summary, Monochrome’s IBTC represents an innovative step toward providing Australian investors with secure and direct access to Bitcoin. The global wave of spot Bitcoin ETFs continues to gain momentum, opening up new opportunities for investors worldwide.

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