TLDR
- Australia’s first spot Bitcoin ETF (IBTC) that holds Bitcoin directly will begin trading on the Cboe Australia exchange on June 4, 2024.
- Monochrome Asset Management is launching the ETF after receiving approval under Australia’s crypto asset licensing regime established in 2021.
- Before IBTC, Australian investors could only invest in ETFs that indirectly held Bitcoin or through offshore Bitcoin products without regulatory protections.
- IBTC’s Bitcoin holdings will be stored offline in a device not connected to the internet, meeting Australian custody standards.
- The launch of IBTC marks Australia joining other major markets like the U.S., Hong Kong, and parts of Europe in offering spot Bitcoin ETFs.
Australia is set to join the growing list of countries offering investors a way to gain exposure to Bitcoin through a spot exchange-traded fund (ETF).
The Monochrome Bitcoin ETF (IBTC) will begin trading on the Cboe Australia exchange when markets open on Monday, June 4, 2024.
IBTC is the first and only ETF in Australia that will hold Bitcoin directly, a significant milestone for the country’s crypto industry.
Introducing Australia's first ETF that holds bitcoin directly – the Monochrome Bitcoin ETF (Ticker: IBTC) pic.twitter.com/0l6PsKOlpb
— Monochrome (@MonochromeAsset) June 3, 2024
Up until now, Australian investors could only access Bitcoin through ETFs that indirectly held the cryptocurrency or through offshore products, neither of which provided the same level of regulatory protections.
The launch of IBTC follows the recent establishment of a new crypto asset licensing category under Australian Financial Services (AFS) licensing rules in 2021.
Monochrome Asset Management successfully obtained approval from the Australian Securities & Investments Commission (ASIC) and Cboe Australia to offer this product, meeting the necessary regulatory requirements.
According to Monochrome, a key advantage of IBTC is that its Bitcoin holdings will be stored offline in a device not connected to the internet.
This approach, combined with the use of a crypto custody solution that meets Australian institutional custody standards, aims to provide enhanced security for investors’ assets.
Jeff Yew, CEO of Monochrome Asset Management, highlighted the significance of IBTC, stating,
“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 AFS licensing regime.”
The launch of IBTC marks Australia’s entry into a growing global trend of offering spot Bitcoin ETFs.
The United States became one of the first major markets to approve such products in January 2024, with several issuers launching spot Bitcoin ETFs in the following months.
Hong Kong swiftly followed suit, approving its first batch of crypto-related spot ETFs by the end of April 2024, as the city aims to become a leading digital assets hub.
The introduction of IBTC in Australia has already had a positive impact on the cryptocurrency market, with Bitcoin’s price surging to around $69,000 amid the positive news.
This price movement reflects investor enthusiasm and the growing acceptance of Bitcoin as a legitimate asset class.
While IBTC is the first of its kind in Australia, it is unlikely to be the last.
Cboe Australia has expressed its commitment to supporting the development of the crypto industry, and the Australian Securities Exchange (ASX) has also indicated plans to approve spot Bitcoin ETFs before the end of 2024.
As the crypto landscape continues to evolve, the launch of IBTC represents a significant step forward for Australia in providing investors with regulated access to Bitcoin through a familiar investment vehicle.
It remains to be seen how the demand for IBTC will unfold, but its introduction undoubtedly marks a milestone in the country’s crypto journey.
