Australia’s first spot Bitcoin ETF to begin trading tomorrow

Australia is set to join the growing list of countries offering Bitcoin exchange-traded funds (ETFs) with the launch of Australia’s first ETF tomorrow.

Just arrived: 🇦🇺 Australia’s first place #Bitcoin ETF starts tomorrow.

Are you ready? 🚀 pic.twitter.com/EfKqdMU48P

— Bitcoin Magazine (@BitcoinMagazine) June 3, 2024

Monochrome Asset Management announced that its Bitcoin ETF (IBTC) will begin trading on June 4, pending last-minute delays. The ETF trades under the symbol IBTC and carries a management fee of 0.98%.

Issuer Monochrome Asset Management offers this fund as a vehicle for investors to gain exposure to Bitcoin in a regulated framework. The ETF tracks the CME CF Bitcoin Reference Index, providing exposure directly tied to the Bitcoin spot price.

Cboe will become the first Australian exchange to list a Bitcoin ETF, beating the Australian Securities Exchange (ASX). However, according to reports, the ASX also plans to approve a spot Bitcoin ETF before the end of the year.

The launch follows a surge of interest following the landmark regulatory approval of Bitcoin ETFs in the US market in January this year. These products have sparked massive inflows from both institutional and retail investors.

Australia is now ready to follow suit to provide investors with easy and safe exposure to Bitcoin without direct ownership. As a strictly passive ETF, IBTC provides a return profile tied to the price of Bitcoin while eliminating the technical challenges of purchasing physical Bitcoin.

Regulated Bitcoin ETFs launched this year across North America, the UK, Europe, and Asia Pacific. Australia’s entry reflects the widespread acceptance of Bitcoin as an institutional asset class.

Other countries are likely to follow, with major markets now offering spot Bitcoin ETFs. Regulated wrappers provide legitimacy and provide investors with a simple way to gain exposure.