Australian asset manager Monochrome recently announced the application with Cboe Australia to list a bitcoin exchange-traded fund (ETF) in the second quarter of 2024.
The “strategic move” of its flagship product to Cboe aims to deepen the company’s reach in the Asia-Pacific region.
A change of plans: from ASX to Cboe
In July 2023, Australian asset management company Monochrome resubmitted its application for its Monochrome bitcoin ETF (IBTC) amid growing interest in the products. Around the same time, their counterparts in the United States were filing their applications with the Securities and Exchange Commission (SEC).
The new filing came after the Australian Securities and Investments Commission's (ASIC) regulatory framework was updated to allow cryptoasset exchange-traded products.
Today, monochrome bitcoin-etf” target=”_blank” rel=”noopener nofollow”>Announced its “strategic move” to Cboe Australia for its flagship product, IBTC. The Australian subsidiary is one of Cboe Global Markets' five global listing exchanges.
It's worth noting that Australia's application process differs from that of the United States. Australian companies must first obtain approval from the national regulator before applying to list on an Exchange.
Monochrome had planned to list its bitcoin ETF on the Australian Stock Exchange (ASX) for the first time. ASX typically has much higher trading volumes than Cboe Australia in the country.
However, the ASX process for approving the bitcoin ETF is apparently longer and more complicated. As bitcoin-etf” target=”_blank” rel=”noopener nofollow”>reported According to local media, VanEck has been trying to bring a spot btc ETF to the ASX since 2021.
Arian Neiron, managing director and managing director of VanEck Asia-Pacific, said “approval of an ASX-listed bitcoin ETF is not imminent.” Neiron believes many regulatory and foreign exchange issues need to be addressed “before we see a bitcoin ETF on the ASX.”
The Brisbane-based firm commented on its selection of Cboe as its listing venue. Monochrome emphasized “key factors” that align exchange and firm goals. The company's CEO, Jeff Yew, said:
We are proud to be working with Cboe Australia to bring the new Monochrome bitcoin ETF to market, expanding the investment universe for Australian investors. As a leader in global digital assets, their established track record and commitment to innovation and secure market accessibility align with Monochrome's strategic objectives.
<img decoding="async" class="size-large wp-image-292301 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/Australian-asset-manager-to-launch-Bitcoin-ETF-on-Cboe-in.png" alt="bitcoin, btc, btcusdt, crypto, bitcoin ETF” width=”980″ height=”493″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-05_08-09-27.png?w=1022 1022w, https://bitcoinist.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-05_08-09-27.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-05_08-09-27.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/04/Australian-asset-manager-to-launch-Bitcoin-ETF-on-Cboe-in.png 980w, https://bitcoinist.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-05_08-09-27.png?w=360 360w, https://bitcoinist.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-05_08-09-27.png?w=750 750w” sizes=”(max-width: 980px) 100vw, 980px” data-recalc-dims=”1″/>
bitcoin is trading at $66,640 in the 1-day chart. Source: BTCUSDT on x/oT63WyXY/" target="_blank" rel="noopener nofollow">Tradingview.com
bitcoin ETFs Will Get a More Favorable Welcome
Monochrome's flagship investment product aims to enable “exposure backed by experience.” According to your bitcoin-etf” target=”_blank” rel=”noopener nofollow”>websiteIBTC's regulated exposure will offer a “passive investment” to the flagship cryptocurrency.
The fund will have a “passive buy and hold” approach. This strategy will not involve short-term trading, derivatives or price speculation. Additionally, the firm states that it works closely with external companies and expert technical advisors.
If approved, the IBTC would be the first of its kind in the country. The fund is proposed to launch in the second quarter of 2024, but the date remains subject to regulatory approvals. Likewise, the price of the fund will be conditioned by the market operator and regulatory approval.
The successful launch of the Spot bitcoin ETF in the US has expanded adoption and interest in cryptocurrency-based investment products. Asset management companies are waiting for regulatory institutions around the world to approve their applications or update their regulatory framework.
Notably, the Independent Reserve Cryptocurrency Index (IRCI) Australia 2024 revealed that 25% of Australians view bitcoin more favorably following the approval and success of ETFs in the US. The annual study “examines the Australian attitudes towards cryptocurrencies, as well as their level of awareness, adoption, confidence in the growing market.”
<img loading="lazy" decoding="async" class="size-large wp-image-292303 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/1712344697_335_Australian-asset-manager-to-launch-Bitcoin-ETF-on-Cboe-in.png" alt="btc, bitcoin ” width=”820″ height=”552″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/04/1712344697_335_Australian-asset-manager-to-launch-Bitcoin-ETF-on-Cboe-in.png 820w, https://bitcoinist.com/wp-content/uploads/2024/04/Captura-de-Pantalla-2024-04-05-a-las-9.50.35-a.-m.png?w=624 624w, https://bitcoinist.com/wp-content/uploads/2024/04/Captura-de-Pantalla-2024-04-05-a-las-9.50.35-a.-m.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/04/Captura-de-Pantalla-2024-04-05-a-las-9.50.35-a.-m.png?w=750 750w” sizes=”(max-width: 820px) 100vw, 820px” data-recalc-dims=”1″/>
Change in Australian's bitcoin favorability since btc ETF's launch. Source: Independent Reserve
According to the study, many of the people interviewed had a “more favorable perception of bitcoin.” The shift in perspective includes the older generation, as Australians aged 55 and over are “getting ready” for flagship cryptocurrencies and cryptocurrency investments.
Featured image from Unsplash.com, chart from TradingView.com
