Australia is set to enter the cryptocurrency investment scene with launch From the first Bitcoin spot trading fund (ETF) tomorrow. Mono Asset Management's Bitcoin ETF (IBTC) will begin trading on the Cboe Australia exchange on June 4, barring any last-minute delays. This development marks Australia's alignment with global trends following US regulators' approval of spot BTC ETFs earlier this year.
Australia also offers spot Bitcoin ETFs
Monochrome Asset Management, an Australia-based company, is at the forefront of this launch. The IBTC ETF will trade under the ticker IBTC and will incur a management fee of 0.98%. The ETF is designed to provide investors with direct exposure to BTC, and tracks the CME CF Bitcoin Reference Index, which links its value directly to the spot price. This approach removes the complexities and technical challenges associated with purchasing and managing actual Bitcoin.
Prior to this launch, Australian investors could only access Bitcoin indirectly through offshore products or local ETFs that did not directly own Bitcoin. “Prior to IBTC, Australian investors were only able to invest in ETFs that held bitcoin indirectly or through offshore bitcoin products, both of which do not benefit from investor protection rules under the Australian Cryptocurrency Asset Licensing (AFSL) regime,” the asset manager said. Monochrome.
The introduction of IBTC represents an important regulatory milestone, achieved through approval by the Australian Securities and Investments Commission (ASIC) and subsequent listing on Cboe Australia. This puts Cboe as the first Australian exchange to list a BTC ETF, ahead of the larger Australian Securities Exchange (ASX), which is also expected to approve BTC ETFs by the end of the year.
The approval process for IBTC has been relatively quick, reflecting Australia's intention to keep pace with the global adoption of cryptocurrency-related ETFs. Monochrome Asset Management filed for the ETF in April 2024, and the quick turnaround highlights the country's regulatory flexibility in the evolving crypto asset space.
The launch of IBTC capitalizes on growing interest in regulated investment vehicles. The approval of Bitcoin ETFs in the US earlier this year spurred significant inflows from both institutional and retail investors, signaling broader acceptance of Bitcoin as a legitimate asset class. This trend has been mirrored in other regions, with Canada, Brazil, the UK, Europe and Hong Kong seeing the launch of regulated Bitcoin ETFs.
Australia's entry into this market underscores its commitment to providing safe and accessible Bitcoin investment options within a regulated framework. As Australia's first and only ETF to hold BTC directly, IBTC offers a new level of investor protection and ease of access, which is expected to attract a diverse range of investors.
At press time, Bitcoin was trading at $69,419.
Featured image created with DALL·E, chart from TradingView.com