Australia launches its first spot Bitcoin ETF, the Monochrome Bitcoin ETF (IBTB), on the CBOE.
Australia's first spot Bitcoin ETF, the Monochrome Bitcoin ETF (IBTC), is scheduled to begin trading on the CBOE exchange on Tuesday, according to an announcement by Monochrome Asset Management, the fund's issuer. This event marks a significant development in the country's embrace of Bitcoin as an investment asset.
The IBTC ETF, which will trade under the ticker IBTC, is designed to offer investors a regulated means to gain exposure to Bitcoin. With a management fee of 0.98%, the fund tracks the CME CF Bitcoin Reference Rate index, which is directly tied to the spot price of Bitcoin.
Jeff Yew, CEO of Monochrome Asset Management, underscored the product's alignment with the company's mission, stating, “This aligns with Monochrome’s investor protection-driven mission to offer secure, compliant, and straightforward pathways to participate in this transformative space.”
The Cboe exchange will be the first in Australia to list a Bitcoin ETF, getting ahead of the larger Australian Securities Exchange (ASX), which is also reported to be considering spot Bitcoin ETFs for approval by the end of the year. The move by Cboe and Monochrome follows the trend of regulatory approvals for Bitcoin ETFs in other major markets, including the US, which approved its first such products in January this year.
The swift regulatory approval by the Australian Securities & Investments Commission (ASIC) and the subsequent listing by Cboe Australia reflects Australia's ambition to keep pace with global trends. Monochrome Asset Management had applied for approval of the spot Bitcoin ETF in April, highlighting the expedited process in bringing the product to market.
Unlike existing exchange-traded products on Cboe Australia that provide exposure to spot Bitcoin but do not hold Bitcoin directly, the IBTC ETF will be the first to actually hold the Bitcoin. This direct holding approach is expected to benefit from the investor protection rules under the Australian Financial Services Licensing (AFSL) regime.
