Monochrome will introduce IBTC, the first Bitcoin ETF in Australia, on Tuesday. The ETF increases market transparency by giving investors direct exposure to Bitcoin.
As the first exchange-traded fund (ETF) in Australia to own Bitcoin directly, Monochrome Asset Management is preparing to create history. On Tuesday, June 4, 2024, at 10:00 AEST (00:00 UTC), trading for the Monochrome Bitcoin ETF (IBTC) will commence on the Cboe Australia platform.
The Australian crypto market has reached a major milestone with this. Additionally, it provides a clear and regulated channel for investors to purchase Bitcoin directly.
A need in the market was filled with the launch of IBTC. For the time being, this is the only exchange-traded fund (ETF) in Australia that directly owns Bitcoin.
Cboe Australia offers two exchange-traded products (ETPs) that allow investors to potentially profit from spot cryptocurrency assets. But they aren’t directly holding Bitcoin.
The statement from Monochrome said that prior to IBTC, the only options for Australian investors were to invest in offshore Bitcoin products or exchange-traded funds (ETFs) that indirectly hold Bitcoin. Neither of these options provided the same level of protection for investors as the directly held crypto asset AFS licensing framework.
Using the CME CF Bitcoin Reference Rate—Asia Pacific Variant (BRRAP) as its benchmarks, Monochrome revealed in March that IBTC will be the pioneer. When it comes to Bitcoin prices, the BRRAP is a solid yardstick.
All parties involved in the market should be able to verify it and use it as a representation of the market price. In addition, the Bitcoin custodian for Monochrome is the cryptocurrency exchange Gemini.
It was in April 2024 that the business requested to join the Bitcoin ETF. In Australia, businesses must first get the green light from the country’s securities watchdog, ASIC, and then from the exchange that lists the product—in this instance, Cboe Australia. For this product, Monochrome had already received permission from ASIC.
Australian major securities exchange ASX Ltd. supposedly explored authorizing the first spot Bitcoin ETFs before Monochrome’s IBTC debut. These permissions may come to fruition before the year 2024 ends, according to sources with knowledge of the situation.
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