Monochrome emphasized that IBTC will be the first and only ETF in Australia to hold Bitcoin (BTC) directly.
The Australian market for exchange-traded funds (ETFs) is about to witness a significant development as Monochrome, the country’s largest asset manager, prepares to launch the first Bitcoin ETF that directly tracks the value of the crypto asset on June 4.
According to a recent report based on an interview with the company, the Monochrome Bitcoin ETF, known as IBTC, will start trading on Tuesday when the market opens. This new product will be listed on Cboe Australia, instead of the the Australian Securities Exchange (ASX), the company initially proposed in June 2023.
Monochrome chose Cboe Australia for listing their new product due to shared interests and goals. The asset manager said they wanted to collaborate with an international operator that has an established reputation, strategic position, and good presence and expertise across Asia, offering broader investor access.
Monochrome’s Journey to ETF Launch
The firm initially hinted at launching the first Bitcoin spot ETF in Australia back in April 2024, when it submitted an application to the global listing company. This application has now been approved, and the rollout of the product is scheduled for tomorrow.
The company anticipated Cboe Australia to reach a decision regarding the listing in the second quarter of 2024 with a planned launch in July. However, the rollout has come earlier than expected.
Monochrome emphasized that IBTC will be the first and only ETF in Australia to hold Bitcoin (BTC) directly. While the country already has two ETF products that expose investors to spot crypto assets on Cboe Australia, these do not directly hold Bitcoin.
“Before IBTC, Australian investors could only invest in ETFs that indirectly held Bitcoin or through offshore Bitcoin products, neither of which benefited from the investor protection rules under the directly held crypto asset Australian Financial Services Licensing (AFSL) regime,” the company explained.
The company received approval from the Australian Securities & Investments Commission (ASIC) before submitting the application for listing on the Cboe Australia.
The law in the country demands that asset issuers pursue approval from their preferred exchanges after being authorised by the ASIC to offer the product offerings to customers.
Monochrome to Explore Ethereum ETF Opportunities
Once the product starts trading on June 4, Monochrome stated that users could store IBTC in an offline storage device with no internet access. The crypto custody solution complies with the “Australian institutional custody regulatory standards”.
Monochrome CEO Jeff Yew expressed confidence in the new ETF, anticipating significant interest due to the recent rise in popularity of indirect Bitcoin ETF products.
He also mentioned that the asset manager is ready to create and introduce an Ether (ETH) ETF, which will similarly hold the asset directly like IBTC.
“We are also exploring other thematic opportunities within the digital asset space to cater to investor demand,” he added.
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