Monochrome Set to Launch Australia's First Spot Bitcoin ETF, Offering Direct Crypto Exposure
Summary:
Australia is set to launch its first spot Bitcoin ETF, the Monochrome Bitcoin ETF, on June 4. The ETF, storing the Bitcoin holding securely offline, is the first to receive approval under a new crypto licensing category, offering investors direct exposure to Bitcoin. Monochrome anticipates strong investor interest and plans to develop further digital asset investment opportunities, including an Ether ETF.
On market launch day, Australia is set to introduce its inaugural spot Bitcoin exchange-traded fund (ETF), a trailblazer in holding the digital asset directly. The Monochrome Bitcoin ETF (IBTC) will debut on the Cboe Australia exchange on June 4. Monochrome Asset Management, the first to score approval under Australian Financial Services (AFS) newly-created crypto licensing category issued in 2021, pioneers this venture. Existing exchange-traded products on the Australian market offer exposure to Bitcoin, yet the Monochrome Bitcoin ETF outperforms via direct Bitcoin holding. The ETF's Bitcoin assets are securely stored offline, disconnected from the internet, using a cryptocurrency custody solution that complies with Australian institutional custody standards. Prior to IBTC's unveiling, Australian investors could only invest in ETFs holding Bitcoin indirectly or through international Bitcoin products, with neither benefitting from security rules under the direct crypto asset AFS license. Contrary to its American counterparts, investors can redeem from the ETF in-kind. Anticipating a “robust interest” in its ETF due to steady growth in indirect Bitcoin ETF products in recent months, Monochrome CEO Jeff Yew confirmed the firm’s preparedness to develop and introduce an Ether (ETH) ETF, which would also hold assets directly. They are also considering additional investment opportunities within the digital asset category as per investor demand. IBTC's launch in Australia happens just over a month following the introduction of four spot Bitcoin ETFs in Hong Kong. Except for Bosera's spot Bitcoin ETF, the Hong Kong ETFs have observed net outflows since their launch. Comparatively, U.S. Bitcoin ETFs have performed well, boasting an aggregate inflow of $13.9 billion despite outflows of $17.9 billion from Grayscale Bitcoin Trust. Yew expects Australian spot Bitcoin ETFs to rake in between $3 billion to $4 billion in net inflows over the next three years, given Australia’s crypto-friendly nature.
Published At
6/3/2024 1:08:17 PM
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