- IBTC, an ETF by Monochrome Asset Management, will start trading on Cboe Australia.
- Approval of ETFs in the US has fueled a frenzy for spot ETFs.
Monochrome Bitcoin exchange-traded fund, IBTC, will reportedly debut on the Cboe Australia Exchange on Tuesday. The ETF by Monochrome Asset Management is the first and only existing product that holds Bitcoin directly in Australia.
Although Australia has two ETFs that give investors exposure to spot crypto assets on Cboe Australia, none permits direct holding of Bitcoin. Monochrome said ahead of the IBTC debut:
“Before IBTC, Australian investors were only able to invest in ETFs that indirectly hold bitcoin or through offshore bitcoin products, both of which don’t benefit from the investor protection rules under the directly held crypto asset Australian Financial Services Licensing (AFSL) licensing regime.”
See Related: CBOE To Offer BTC And ETH Margin Futures Trading In January
Approval in Tandem With Crypto Trends
The launch of Monochrome’s spot ETF comes months after the US, in January 2024, approved its first spot Bitcoin ETFs. The products have seen significant inflows as investors eye direct exposure to the world’s leading cryptocurrency.
Hong Kong swiftly followed while Australia showed a willingness to accept similar products. This has seen Monochrome’s ETF earning swift approval despite the company applying in April.
Monochrome’s CEO Jeff Yew believes the approval of IBTC aligns with the company’s investor protection mission of offering a secure, straightforward, and compliant pathway for participating in the transformative crypto space. Consequently, Australian firms are required to be approved by the Australian Securities & Investments Commission (ASIC) before being permitted to list their products.