Australia’s first spot Bitcoin ETF to go live on Tuesday

Monochrome Bitcoin ETF will begin trading on the Cboe Australia exchange.

The management fee for the ETF listed as IBTC will be 0.98%. Issuer Monochrome Asset Management provides the fund, allowing investors to access Bitcoin within a regulated framework.

This framework, overseen by the Australian Securities and Investments Commission (ASIC), ensures investor protection and compliance with financial regulations.

The company stated that investors have legal rights over the Bitcoin (BTC) in the fund and can request a withdrawal. This is the first and only ETF to hold Bitcoin directly in Australia. Cboe will be the first exchange to offer a Bitcoin ETF in Australia ahead of the ASX, which aims to approve spot Bitcoin ETFs by the end of the year.

Today is the last day. No spot Bitcoin ETF in Australia 🇦🇺: Monochrome starts tomorrow!

Monochrome’s main difference over foreign ETFs is that it allows you to actually withdraw your bitcoin

Long road to launch: good luck! 🔥

— WizardofAus 🇦🇺丰🔑⚡ (@BTCSchellingPt) June 3, 2024

Spot ETF is designed to reflect BTC market prices, resist manipulation, and be verified by market participants. Monochrome is collaborating with crypto exchange Gemini as the custodian of Bitcoin.

A spot crypto ETF tracks the price of a specific crypto and invests portfolio funds in that crypto. These funds are traded on public exchanges but generally track a specific crypto. Like similar funds, crypto ETFs are listed on regular exchanges, and investors can hold them in standard brokerage accounts.

Bitcoin ETF adoption

This spot ETF announcement comes at a positive time for the crypto industry, especially from a political and global perspective.

In early 2024, the US Securities and Exchange Commission gave the green light for several spot Bitcoin ETFs to list on all registered national exchanges in the US.

In mid-April, Hong Kong conditionally allowed the first spot Bitcoin and Ethereum ETFs, paving the way for the city to take the lead in Asia as the first city to embrace crypto as a primary investment.

The US House of Representatives also passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling to the crypto industry that the United States welcomes crypto.