Australia’s first Bitcoin ETF to debut tomorrow on the local CBOE exchange – DiarioBitcoin
By Hannah Perez
A first ETF that holds Bitcoin directly will launch in Australia. There are already other similar products, but none with direct exposure to cryptocurrencies.
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- Monochrome to Launch Australia’s First Spot Bitcoin ETF Tomorrow
- It will be listed on the Cboe Australia exchange under the symbol IBTC, with a commission of less than 1%
- While there are other similar products in the country, it will be the first to hold Bitcoin directly
Australia is joining the list of countries offering an exchange-traded fund (ETF) based on Bitcoin cash. A first product of this type will begin trading tomorrow on a local stock exchange.
Monochrome Asset Managementan Australian investment management company, said its ETF held Bitcoin directly ready to be offered to Australian investors after obtaining approval, reported CoinDesk.
He Monochrome Bitcoin ETF (IBTC) will begin trading on open markets on the stock exchange Cboe Australia on Tuesday, June 4 under the symbol IBTC and with a management fee of 0.98%, details the product website.
The administrator had already announced in April that it was preparing to launch the product after receiving approval from the Australian Securities and Investments Commission (ASIC). In Australia, companies require approval from the regulator and then from the exchange that lists the product, in this case Cboe Australia.
Last year, Monochrome had already reported an application with the intention of listing the ETF on the Australian Stock Exchange (ASX), the largest in the country. But then he chose to change to Cboe Australia arguing that it was more aligned with their objectives.
Australia already has two exchange-traded products that provide spot cryptocurrency exposure in Cboe Australiabut none of them own bitcoins directly, so the ETF Monochrome It will be the first of its kind in the country.
“Before IBTC, Australian investors could only invest in ETFs that indirectly held bitcoin or through offshore bitcoin products, which do not benefit from investor protection rules under the financial services licensing licensing regime. Australian Directly Owned Crypto Assets (AFSL)“says a company statement cited by CoinDesk and other news media.
Interest in ETFs Bitcoin arrives in Australia
The news comes at a time of growing investor interest in traditional investment vehicles linked to Bitcoin. In January, the US Securities and Exchange Commission approved the first ETFs of Bitcoin cash and soon after Hong Kong regulators also opened the door to cryptocurrency ETFs.
Australia is now next on the list, meaning local investors will have a product with easy, safe and direct exposure to Bitcoin, without needing to buy or hold the asset personally. It has been reported that the ASX exchange is also preparing to receive ETFs with these characteristics in 2024.
Unlike its counterparts in the United States, which are redeemed in cash, the ETF Monochrome allows reimbursement in kind, as detailed Cointelegraph. This means that investors directly receive Bitcoin.
Monochrome assured that IBTC holdings are stored offline on a device not connected to the Internet and with a crypto custody solution that complies with the “Australian Institutional Custody Regulatory Standards“, according to that report.
Meanwhile, the CEO of MonochromeJeff Yew, anticipates that there will be a “strong interest” in the ETF Bitcoin given the steady growth of indirect ETF products from Bitcoin in recent months. He also confirmed to the media that the company is ready to create and offer an ETF of Ethereum spot, a type of product newly approved in the US.
“This aligns with Monochrome’s investor protection-driven mission to provide safe, compliant and easy ways to participate in this transformative space.“Yew said.
The US market, where ETFs Bitcoin have fared better with cumulative total inflows of more than $13 billion since January, now await the official launch of the first ETFs Ethereum cash.
Article by Hannah Estefanía Pérez / DailyBitcoin
Edited image of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
