Australia secures first spot ETF to directly hold Bitcoin
Australia’s first Bitcoin exchange-traded fund (ETF) to hold the asset directly is set to begin trading when markets open on Tuesday.
Monochrome Bitcoin ETF (IBTC) will begin trading in the open market on the Cboe Australia exchange on Tuesday, June 4.
There are already several exchange-traded products offering exposure to Bitcoin in Australia, but Monochrome Asset Management is one of the few companies approved under the new crypto asset licensing category created under the Australian Financial Services (AFS) Licensing Rules 2021. This is the first company.
Monochrome was proud to host 120 guests in Sydney last week to celebrate the launch of the upcoming Monochrome Bitcoin ETF.
This milestone is an important step in our journey to provide investors with the tools and confidence to navigate the digital financial landscape. pic.twitter.com/tfWGzYwl3R
— Monochrome (@MonochromeAsset) June 2, 2024
This allows the ETF to hold Bitcoin (BTC) directly. Monochrome said IBTC’s holdings are stored offline on devices that are not connected to the internet and through a cryptocurrency custody solution that meets “Australian institutional custody regulatory standards.”
“Prior to IBTC, Australian investors could only invest through ETFs that held Bitcoin indirectly or through offshore Bitcoin products, neither of which benefited from the investor protection regulations under the directly held cryptocurrency AFS licensing regime. said Monochrome. name.
Unlike ETFs in the US, which generate cash, ETFs allow redemption in kind from investors.
Monochrome CEO Jeff Yew told Cointelegraph that he expects there to be “significant interest” in his company’s ETFs, given the continued growth of indirect Bitcoin ETF products in recent months. .
He confirmed that the company is “ready” to build and launch an Ether (ETH) ETF that will hold the asset directly.
“We are also exploring other thematic opportunities within the digital asset sector to meet investor demand,” he added.
Related: Why is Bitcoin stagnating despite $2 billion in spot ETF inflows?
The launch of IBTC in Australia comes just over a month after the launch of four spot Bitcoin ETFs in Hong Kong on April 30.
However, three out of four Hong Kong ETFs have recorded cumulative net outflows since launch, with the exception of Bosera’s spot Bitcoin ETF.
US Bitcoin ETFs performed better, with cumulative inflows of $13.9 billion, offsetting $17.9 billion outflows from the Grayscale Bitcoin Trust.
Yew claimed Australia is a “very cryptocurrency-heavy country” and expects local spot Bitcoin ETFs to generate $3 billion to $4 billion in net inflows within the first three years.
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