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Australia’s First Spot Bitcoin ETF With Direct BTC Holdings to Go Live on Tuesday

Jun 2, 2024
  • The nation’s first spot-bitcoin ETF to hold bitcoin directly launches in Australia on Tuesday.
  • Monochrome Asset Management applied for approval in April. The swift approval reflects a push by the nation to keep up with global trends around crypto-related ETFs.
As a researcher with a background in finance and experience in the cryptocurrency industry, I am thrilled to see Monochrome Asset Management’s direct bitcoin ETF launching in Australia. This is a significant development for Australian investors who previously had limited options to invest directly in Bitcoin through locally regulated products.Australia’s Monochrome Asset Management is set to debut its Bitcoin (BTC) exchange-traded fund (ETF), IBTC, for trading on the Cboe Australia exchange coming Tuesday, as confirmed to CoinDesk by the company.

The product is the first and only ETF that holds bitcoin directly in Australia, the company said.

Prior to the introduction of the Bitcoin Trust Company (IBTC), Australian investors were restricted to investing in Exchange-Traded Funds (ETFs) that held bitcoin indirectly or through offshore products. However, these investment methods did not provide the investor protection granted by the directly held crypto asset Australian Financial Services Licensing (AFSL) regulatory framework.

As a crypto investor, I’ve noticed that there are currently two Exchange-Traded Products (ETPs) in Australia that offer exposure to cryptocurrency assets listed on Cboe Australia. However, these ETPs don’t actually hold the underlying Bitcoin assets themselves. Instead, they provide synthetic exposure through derivatives or other methods.

In April 2024, our company filed an application for a bitcoin (BTC) exchange-traded fund (ETF). Following the U.S.’s approval of spot bitcoin ETFs in January 2024, financial hubs like Hong Kong and Australia have expressed interest in these products. Towards the end of April, Hong Kong made history by officially approving the first wave of crypto-related spot ETFs, marking a significant milestone for the city as it strives to establish itself as a global leader in digital assets.

As a crypto investor in Australia, I’d explain it like this: Before a cryptocurrency product can be listed on an exchange in Australia, such as Cboe Australia, it must first receive the green light from two key entities. The first is the Australian Securities & Investments Commission (ASIC), which serves as the regulatory body. Once ASIC grants approval for the product, the exchange can then proceed with listing it. In this specific instance, Monochrome had already secured approval from ASIC for their product.

Cboe Australia did not immediately respond to a CoinDesk request for comment.

“Jeff Yew, CEO of Monochrome Asset Management, explains that our approach aligns with our commitment as an investor protection-focused firm to provide secure, compliant, and uncomplicated avenues for involvement in this innovative sector.”

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2024-06-03 13:27