Australia’s inaugural Bitcoin ETF prepares to commence trading on the exchange.

Australia’s First Bitcoin ETF to Commence Trading on Exchange


By Jimmy Aki
Updated: June 3, 2024, 12:18 EDT
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Reading Time: 2 minutes


Monochrome Asset Management, an Australian-based company, announced on June 2 that its Bitcoin exchange-traded fund (ETF), IBTC, will soon be available for trading. This milestone makes IBTC the first spot Bitcoin ETF to be traded in Australia.
Australia’s First Spot Bitcoin ETF to Keep Holdings Secure Offline
Monochrome revealed that its Bitcoin ETF (IBTC) will begin trading on the Cboe Australia exchange on Tuesday, June 4, with a management fee of 0.98%. To ensure maximum security, the holdings of IBTC will be stored offline in a device disconnected from the internet.
Notably, Monochrome emphasized the advantage of IBTC over previous options available to Australian investors, as it is the first and only ETF in Australia to hold Bitcoin directly.
Monochrome stated,
“Prior to IBTC, Australian investors could only invest in ETFs that indirectly held bitcoin or through offshore bitcoin products, neither of which benefit from the investor protection rules under the directly held crypto asset Australian Financial Services Licensing (AFSL) licensing regime.”
Monochrome Bitcoin ETF offers investors exposure to Bitcoin within a regulated framework. Australia’s spot Bitcoin ETF tracks the “CME CF Bitcoin Reference Rate Index,” ensuring its performance is directly linked to the spot price of Bitcoin.
Cboe Australia will be the first Australian exchange to list a Bitcoin ETF, surpassing the larger Australian Securities Exchange (ASX) in bringing this product to the market.
This launch takes advantage of the increasing demand for spot Bitcoin ETFs following their regulatory approval in the US market on January 11, 2024. As a result, institutional and retail investors have been pouring in investments.
Australia is now ready to offer secure and straightforward exposure to Bitcoin without requiring direct ownership. As a passive ETF, IBTC eliminates the technical challenges associated with purchasing actual Bitcoin while providing returns based on Bitcoin’s price.
It is worth noting that Monochrome applied for a spot Bitcoin ETF to be listed on the Cboe Australia. The asset manager fulfilled all requirements and ultimately obtained approval from the Australian Securities & Investments Commission (ASIC).
Spot Bitcoin ETFs Gaining Traction Worldwide
Since the approval of spot Bitcoin ETFs in the US in January 2024, other countries such as Hong Kong and Australia have also expressed their willingness to allow these products.
On April 15,
Hong Kong approved the first batch of spot-based Bitcoin and Ether ETFs
by asset managers Harvest Global Investments, China Asset Management (ChinaAMC), and a consortium of Bosera Asset Management and HashKey Capital.
This was followed by
WisdomTree receiving approval from the Financial Conduct Authority
(FCA) to list its cryptocurrency exchange-traded products (ETPs), WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW), on the London Stock Exchange (LSE).
The entry of Australia’s spot Bitcoin ETF into the market signifies the broader acceptance of Bitcoin as an institutional asset class. Other countries are likely to follow suit, as major markets are now offering spot Bitcoin ETFs. This regulated structure provides legitimacy and offers investors a direct avenue to gain exposure to Bitcoin.
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