Bitcoin ETF

Bitcoin

Australia’s first spot Bitcoin&nbsp;exchange-traded fund (ETF) — which holds the asset directly — is set to launch for trading when markets open on Tuesday.
The Monochrome Bitcoin ETF (IBTC) will begin trading at markets open on the Cboe Australia exchange on Tuesday, June 4.
Australia already has several <a href="https://cointelegraph.com/learn/types-of-bitcoin-etfs" rel="noopener noreferrer nofollow">exchange-traded products</a> offering <a href="https://cointelegraph.com/learn/investing-in-bitcoin-etf" rel="noopener noreferrer nofollow">exposure to Bitcoin</a>, but Monochrome Asset Management is the first to get approval under a new crypto asset licensing category made under Australian Financial Services (AFS) licensing rules in 2021.
<blockquote class="twitter-tweet">
 Monochrome was proud to host 120 guests in Sydney last week as we celebrate the upcoming launch of the Monochrome Bitcoin ETF. This milestone marks a significant step in our journey empower investors with the tools and confidence to navigate the digital financial landscape. <a href="https://t.co/tfWGzYwl3R" rel="noopener noreferrer nofollow">pic.twitter.com/tfWGzYwl3R</a>— Monochrome (@MonochromeAsset) <a href="https://twitter.com/MonochromeAsset/status/1797402377965981820?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 2, 2024</a>
</blockquote>
It allows the ETF to hold Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>)&nbsp;directly. Monochrome said IBTC’s holdings are stored offline in a device not connected to the internet and with a crypto custody solution that meets “Australian institutional custody regulatory standards.”
“Before IBTC, Australian investors were only able to invest in ETFs that indirectly hold&nbsp;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,” Monochrome said in a statement.
Unlike its counterparts in the United States,&nbsp;<a href="https://cointelegraph.com/news/bitcoin-etf-applicants-bend-the-knee-cash-redemption-model" rel="noopener noreferrer nofollow">which are cash create</a>, the ETF allows <a href="https://cointelegraph.com/learn/types-of-bitcoin-etfs" rel="noopener noreferrer nofollow">in-kind</a> redemption from investors.
Monochrome CEO Jeff Yew told Cointelegraph he anticipates “strong interest” in his firm’s ETF given the consistent growth of indirect Bitcoin ETF products in recent months.
He confirmed the firm is “ready” to build and launch an Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) ETF, which will also hold the asset directly.
“We are also exploring other thematic opportunities within the digital asset sector to meet investor demand,” he added.
Related: <a href="https://cointelegraph.com/news/why-is-bitcoin-stagnated-despite-2b-in-spot-etf-inflows" rel="noopener noreferrer nofollow">Why is Bitcoin stagnated despite $2B in spot ETF inflows?</a>
The launch of IBTC in Australia comes just a little over a month after the launch of four spot Bitcoin ETFs in Hong Kong on April 30.
However, three out of four of the Hong Kong ETFs have had <a href="https://cointelegraph.com/news/hong-kong-spot-bitcoin-ether-etfs-struggle-gain-traction" rel="noopener noreferrer nofollow">cumulative net outflows</a> since launching, with the exception of Bosera’s spot Bitcoin ETF.
U.S. Bitcoin ETFs <a href="https://cointelegraph.com/news/600-firms-billions-investment-bitcoin-etf" rel="noopener noreferrer nofollow">have fared better</a>, with a cumulative inflow of $13.9 billion, offset by $17.9 billion in outflows from the Grayscale Bitcoin Trust.
Yew claimed Australia was a “very crypto-heavy country” and expects local spot Bitcoin ETFs to generate between <a href="https://cointelegraph.com/news/australian-stock-exchange-asx-approve-spot-bitcoin-etf" rel="noopener noreferrer nofollow">$3 billion to $4 billion</a> in net inflows within the first three years.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-city-guide-sydney-harbor-bridge-synthetix-finder/" rel="noopener noreferrer nofollow">Crypto City guide to Sydney — More than just a ‘token’ bridge</a>

Australia gets first spot ETF that holds Bitcoin directly

Cointelegraph

Other articles published on Jun 3, 2024

Is Dogecoin set for a major leap? Historical trends say yes!

BlockDAG’s Dashboard Elevates Transparency, Aiming for 30,000x ROI Amid ETH vs. SOL Competition &...

Investors Boost Crypto Investment Products

Shiba Inu (SHIB) Team Warns Investors of Rising Scam Threats

Binance Will Delist 4 Altcoins: Price Impact

Will Ethereum Outperform Bitcoin in the Next Bull Run?

Join our free newsletter for daily crypto updates!