The Bitcoin Spot ETF (IBTC) managed by Monochrome Asset Management is the first in Australia to hold bitcoins directly, providing a new option for local investors.
The swift approval of this ETF reflects Australia’s willingness to follow global trends and position itself as a key player in the cryptocurrency ecosystem.
The IBTC complies with the Australian Financial Services License (AFSL) regime, ensuring enhanced investor protection through strict regulation.
This Tuesday marks a turning point for Australian investors with the launch of the first Bitcoin ETF that holds BTC directly.
Managed by Monochrome Asset Management, this ETF (IBTC) will be available on the Cboe Australia exchange. This introduction represents a first in Australia, where previously available products only offered indirect exposure to Bitcoin or were based outside the Australian borders.
Swift Approval Reflecting Regulatory Evolution
Monochrome Asset Management filed its application for this ETF in April 2024, and the rapid approval of this ETF showcases Australia’s effort to stay in line with global cryptocurrency-related ETF trends.
Similar to Hong Kong, the region is showing growing openness to crypto-related financial products. Hong Kong, in particular, approved its first series of Spot ETFs linked to cryptocurrencies in late April, cementing its position as a major hub for digital assets.
Regulatory Framework Focused on Investor Protection
Before IBTC, Australian investors could only invest in ETFs indirectly holding bitcoins or through offshore bitcoin products, which do not benefit from investor protection rules under the Australian Financial Services Licensing (AFSL) regime for directly held crypto assets.
The main distinction of IBTC compared to other available products in Australia lies in its adherence to the Australian Financial Services License (AFSL) regime, which ensures that directly held crypto assets benefit from investor protection rules.
This approach aligns Monochrome’s offering with its mission of investor protection, aiming to provide secure and compliant means to participate in the transformative space of cryptocurrencies. Monochrome Asset Management CEO, Jeff Yew, highlights the firm’s commitment to offering clear and regulated investment paths in the cryptocurrency domain.
