Australia will join the growing list of countries offering a spot bitcoin exchange-traded fund (ETF), with the country's first such product expected to launch tomorrow.
<blockquote class="twitter-tweet”>
ONLY IN: First place in Australia twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF will launch tomorrow.
You are ready? pic.twitter.com/EfKqdMU48P
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1797543991950614917?ref_src=twsrc%5Etfw”>June 3, 2024
Monochrome Asset Management announced that bitcoin ETF (IBTC) bitcoin-etf”>will begin trading on June 4, awaiting possible last minute delays. The ETF will trade under the symbol IBTC and will have a management fee of 0.98%.
Monochrome Asset Management, the issuer, offers the fund as a means for investors to gain exposure to bitcoin in a regulated framework. The ETF tracks the CME CF bitcoin Reference Rate Index, providing exposure linked directly to the spot price of bitcoin.
Cboe will become the first Australian exchange to list a bitcoin ETF, overtaking the larger Australian Securities Exchange (ASX) in the market. However, the ASX is also reportedly planning to approve spot bitcoin ETFs before the end of the year.
The launches capitalize on growing interest following the major regulatory approval of bitcoin ETFs in the US market in January. Those products sparked massive inflows from both institutional and retail investors.
Australia is now set to follow suit and offer investors easy and secure exposure to bitcoin without direct ownership. As a strictly passive ETF, IBTC eliminates the technical challenges of purchasing real bitcoin while providing a performance profile tied to the price of bitcoin.
Regulated bitcoin ETFs were launched this year in North America, the United Kingdom, Europe, and Asia-Pacific. Australia's entry reflects the broader adoption of bitcoin as an institutional asset class.
Other countries are likely to follow, with major exchanges now offering spot bitcoin ETFs. The regulated wrapper provides legitimacy and offers investors an easy way to gain exposure.
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