Monochrome Asset Management Launches Australia’s First Direct Bitcoin ETF

Monochrome Asset Management, based in Australia, is set to launch the country’s first direct Bitcoin exchange-traded fund (ETF), named Monochrome Bitcoin ETF (IBTC), on the Cboe Australia exchange. The ETF begins trading on Tuesday, marking a significant milestone in Australia’s financial landscape.

Before IBTC, Australian investors had limited options for Bitcoin investments. They could only invest in ETFs that indirectly held Bitcoin or through offshore Bitcoin products. These options did not offer the investor protection afforded by the Australian Financial Services Licensing (AFSL) regime. The company highlighted, “Before IBTC, Australian investors were only able to invest in ETFs that indirectly hold bitcoin or through offshore bitcoin products, both of which don’t benefit from the investor protection rules under the directly held crypto asset Australian Financial Services Licensing (AFSL) licensing regime.”

Regulatory Milestones

Monochrome Asset Management applied for a spot Bitcoin ETF in April 2024. This move came after the U.S. approved spot Bitcoin ETFs in January 2024, influencing regions like Hong Kong and Australia to consider similar products. By the end of April, Hong Kong approved its first batch of crypto-related spot ETFs, aiming to establish itself as a digital assets hub.

In Australia, firms need approval from the Australian Securities & Investments Commission (ASIC) and the exchange listing the product. Monochrome received ASIC’s approval for IBTC, paving the way for its listing on Cboe Australia. Cboe Australia did not immediately respond.

Jeff Yew, CEO of Monochrome Asset Management, emphasized the company’s dedication to investor safety. “This aligns with Monochrome’s investor protection-driven mission to offer secure, compliant, and straightforward pathways to participate in this transformative space,” he stated.

The launch of IBTC represents a significant step forward for Australian investors, providing them with a secure and regulated option to directly invest in Bitcoin.