Australian asset manager Monochrome plans to launch the country's first spot bitcoin exchange-traded fund (ETF) holding physical bitcoins.
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ONLY IN: The first twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin spot ETF in Australia to go live "in 2024," says asset manager Monochrome.
It would be the first Australian ETF to celebrate twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btc directly. pic.twitter.com/x8nYRNzZra
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1776214544597053463?ref_src=twsrc%5Etfw”>April 5, 2024
Monochrome has filed an application with the Cboe Australia stock exchange to list its flagship bitcoin ETF. The firm expects approval in mid-2024.
Unlike previous bitcoin exchange-traded products in Australia, the Monochrome ETF would hold actual bitcoins. This structure mirrors the highly successful spot bitcoin ETFs in the United States.
The Australian Securities and Investments Commission has already given the green light to Monochrome's proposal. Cboe Australia is now reviewing the application.
“We anticipate a decision from Cboe Australia on the Monochrome bitcoin ETF before mid-2024,” said CEO Jeff Yew. “The Monochrome bitcoin ETF is the first bitcoin ETF in Australia authorized to hold bitcoin directly.”
If approved, the ETF would provide local investors with direct exposure to bitcoin through a regulated investment vehicle. Monochrome said it chose Cboe for its strategic expertise and broad reach across Asia.
The company had originally planned to list on rival exchange ASX, but has since moved to Cboe's platform.
Australia joining the bitcoin ETF spot movement could further validate bitcoin as an investable asset class, as Monochrome aims to tap into growing institutional demand as the bitcoin industry matures.
The fund's launch would come just before the next bitcoin halving event, which would likely increase interest. As the first to own physical bitcoins, Monochrome could quickly dominate the local ETF space in Australia.
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