Australia is ready to enter the cryptocurrency investment landscape with the bitcoin-etf” target=”_blank” rel=”noopener nofollow”>launch of its first spot bitcoin exchange-traded fund (ETF) tomorrow. Monochrome Asset Management's bitcoin ETF (IBTC) will begin trading on Australia's Cboe exchange on June 4, pending last-minute delays. This development marks Australia's alignment with global trends following US regulatory approval of spot btc ETFs earlier this year.
Australia also introduces bitcoin spot ETF
Monochrome Asset Management, an Australia-based company, is at the forefront of this launch. The IBTC ETF will trade under the symbol IBTC and will have a management fee of 0.98%. The ETF is designed to offer investors direct exposure to btc, tracking the CME CF bitcoin Reference Rate Index, which links its value directly to the spot price. This approach eliminates the complexities and technical challenges associated with purchasing and managing real bitcoin.
Prior to this launch, Australian investors could only access bitcoin indirectly through offshore products or local ETFs that did not hold btc directly. “Prior to IBTC, Australian investors could only invest in ETFs that held bitcoin indirectly or through offshore bitcoin products, which do not benefit from investor protection rules under the Australian financial services licensing licensing regime ( AFSL) of directly owned crypto assets. Monochrome Asset Management stated.
The introduction of IBTC represents a significant regulatory milestone, achieved through approval by the Australian Securities and Investments Commission (ASIC) and subsequent listing on Cboe Australia. This positions Cboe as the first Australian exchange to list a btc ETF, ahead of the larger Australian Securities Exchange (ASX), which is also expected to approve spot btc ETFs by the end of the year.
The IBTC approval process was relatively quick, reflecting Australia's intention to keep pace with global adoption of cryptocurrency-related ETFs. Monochrome Asset Management filed for the ETF in April 2024, and the rapid turnaround highlights the country's regulatory agility in the evolving cryptoasset space.
The launch of IBTC taps into a growing interest in regulated investment vehicles. The approval of btc spot ETFs in the US earlier this year catalyzed significant capital inflows from both institutional and retail investors, signaling broader acceptance of btc as a legitimate asset class. This trend has been mirrored in other regions: Canada, Brazil, the United Kingdom, Europe, and Hong Kong have all seen the launch of regulated bitcoin ETFs.
Australia's foray into this market underlines its commitment to providing safe and accessible bitcoin investment options within a regulated framework. As the first and only ETF in Australia to hold btc directly, IBTC offers a new level of investor protection and ease of access, which is expected to appeal to a wide range of investors.
At the time of publication, btc was trading at $69,419.
Featured image created with DALL·E, chart from TradingView.com
