Australia’s first direct Bitcoin spot ETF launches

adminJune 4, 2024

Australia is poised to strengthen its cryptocurrency investment framework with the introduction of the country’s first Bitcoin exchange-traded fund (ETF). This product allows you to hold Bitcoin directly, linking Australia with other countries such as the US, Canada and Hong Kong that offer similar investment opportunities. The Monochrome Bitcoin ETF (IBTC), scheduled to begin trading on the Cboe Australia exchange on Tuesday, June 4, represents a significant development in Australia’s approach to cryptocurrency investing.

Australia to embrace direct investment in Bitcoin with new ETF

Previously, Australian investors had access to a variety of exchange-traded products providing exposure to Bitcoin, but these products did not hold the cryptocurrency directly. The launch of IBTC by Monochrome Asset Management marks a pivotal change as it is the first ETF to be approved under the new cryptocurrency asset category under the Australian Financial Services (AFS) licensing regulations enacted in 2021. Bitcoins are stored offline in secure devices isolated from the internet, complying with the stringent Australian regulatory custody standards.

Monochrome Bitcoin ETF: A New Era in Cryptocurrency Investing

Monochrome CEO Jeff Yew expressed optimism about the new ETF, noting the growing interest in direct Bitcoin investment, as opposed to the indirect options or offshore Bitcoin products previously available. This indirect route did not provide the investor protection benefits provided by the directly held cryptocurrency AFS licensing framework. The new ETF’s direct holding feature allows for in-kind redemptions, which are not typically available in U.S. ETFs that operate on a cash-generating basis.

In the interview, Yew revealed that his company is not only ready to launch IBTC, but is also preparing to introduce an Ether ETF that will hold the asset directly. Monochrome is also exploring additional thematic opportunities within the digital asset sector to meet growing investor demand.

The plan comes shortly after the introduction of four spot Bitcoin ETFs in Hong Kong on April 30. Nonetheless, three out of four Hong Kong ETFs experienced cumulative net outflows, with only Bosera’s spot Bitcoin ETF showing positive results. In contrast, US Bitcoin ETFs saw significant activity with inflows of $13.9 billion, which were accompanied by outflows of $17.9 billion from the Grayscale Bitcoin Trust.

Yew believes that with Australia’s strong cryptocurrency activity, local spot Bitcoin ETFs could attract net inflows of $3 billion to $4 billion over the next three years, reflecting strong investor confidence in the Australian cryptocurrency market. You mentioned that you expect it to happen.

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

Sealana: Solana Meme Coin’s Rising Star in the Presale Arena

Sealana has emerged as the new highlight of the Solana-based meme coin space, capturing the hearts of intrepid investors known as degens. These enthusiasts diligently search for the latest and greatest opportunities in meme coins. A new competitor on the market, Sealana, is inspired by the South Park character depicted as a seal participating in a typical merchant’s tuna and cola diet, and is looking for the next big hit in the Solana meme coin scene.

These new tokens offer no real utility and are being marketed purely for the excitement surrounding meme coins. It relies on the adventurous spirit of investors who are attracted to the high-risk, high-reward nature of such ventures. Following a simple pre-sale approach, Sealana asks investors to acquire $SEAL tokens by sending SOL directly to a designated address. This is a method Slotthana previously used during a very successful pre-sale that quickly raised over $15 million.

Within the first 24 hours, Sealana has already generated quite a buzz, amassing over $125,000, and looks set to match or even surpass its predecessor’s rapid fundraising performance. Despite the lack of intrinsic utility, the project’s potential to spread word of mouth is significant, making it an attractive prospect for short-term investors looking for quick profits in the meme coin market.

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