Australia approves first Bitcoin spot ETF, boosting crypto adoption
Australia offers two exchange-traded products (ETPs) through Cboe Australia, granting investors exposure to the spot crypto market. However, these products did not directly hold Bitcoin
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Australia's Monochrome Asset Management launched its Monochrome Bitcoin ETF (IBTC) on the Cboe Australia exchange starting Tuesday, June 4, 2024.
Monochrome Asset Management stated that IBTC is Australia's first and only ETF to hold Bitcoin directly. The announcement highlighted that prior to IBTC, Australian investors were limited to ETFs with indirect Bitcoin exposure or offshore Bitcoin products, neither of which offered the investor protections provided by the directly held crypto asset Australian Financial Services Licensing (AFSL) regime.
Monochrome Asset Management initially filed for its IBTC ETF in April, capitalising on the growing global interest in spot Bitcoin ETFs. After receiving approval in August 2022, the fund will now provide investors with direct exposure to Bitcoin, Ethereum, and other crypto assets.
In recent years, several firms have introduced Bitcoin ETFs that indirectly hold BTC or gain exposure through offshore products. Notably, 21Shares, a prominent issuer of crypto exchange-traded products, has launched some of these offerings.
The firm stated that IBTC's holdings are stored offline, i.e. on a device that is not connected to the internet, and with a crypto custody solution that meets "Australian institutional custody regulatory standards."
