Australia Launches First Direct Bitcoin ETF

Australia’s first direct Bitcoin exchange-traded fund (ETF) is set to open for trading at the beginning of this week. The Monochrome Bitcoin ETF (IBTC) will start its journey on the Cboe Australia exchange on Tuesday, June 4. This ETF is noteworthy for directly holding Bitcoin, a significant first for the country under new cryptocurrency asset licensing rules passed in 2021. Monochrome Asset Management has obtained approval under this new framework, allowing it to maintain direct Bitcoin holdings.

Previously, Australian investors could only access Bitcoin exposure through exchange-traded products that either indirectly held Bitcoin or via offshore products. These options did not benefit from Australia’s investor protection guidelines under its directly-held crypto asset licensing regime. In contrast, Monochrome has assured that IBTC’s Bitcoin holdings are securely stored offline, using an institutional-grade custody solution that adheres to Australian regulations.

Monochrome CEO Jeff Yew has forecasted robust interest in this new ETF, noting the significant rise in indirect Bitcoin ETF products over recent months. According to Yew, the availability of a direct Bitcoin ETF will open new doors for Australian investors, outperforming the limitations posed by offshore and indirect products. Yew confirmed that Monochrome is also preparing to launch an Ether (ETH) ETF, which will similarly hold the asset directly. The company is exploring additional thematic opportunities within the digital asset sector to meet growing investor demand.

It is also interesting to note that this ETF differs from its U.S. counterparts. Unlike them, which focus on cash-created products, Monochrome’s ETF allows for in-kind redemptions from investors. This unique feature may further attract a significant inflow of investments as the ETF goes live.

The introduction of IBTC in Australia follows closely on the heels of four spot Bitcoin ETFs launched in Hong Kong on April 30. Only one of these Hong Kong ETFs, Bosera’s spot Bitcoin ETF, has enjoyed cumulative net inflows. In contrast, U.S. Bitcoin ETFs have generally seen better performance, with significant inflows offset by some outflows from products like the Grayscale Bitcoin Trust.

Jeff Yew views Australia’s crypto market as highly active and predicts that local spot Bitcoin ETFs could generate between $3 billion to $4 billion in net inflows over the next three years. This optimistic outlook suggests a promising future for direct Bitcoin investment options in the country, potentially transforming Australia’s cryptocurrency investment landscape.

The launch of the Monochrome Bitcoin ETF marks a pivotal moment in Australia’s financial markets. By offering direct Bitcoin exposure under robust regulatory conditions, it could pave the way for a range of new investment opportunities in the burgeoning digital asset sector. This move also aligns Australia more closely with global trends, following similar launches in other financial hubs like Hong Kong.

In the broader context, Monochrome’s initiative reflects a growing acceptance and integration of cryptocurrency assets within traditional financial ecosystems. As more investors look towards digital assets for diversification and growth, products like the Monochrome Bitcoin ETF could become standard components of investment portfolios. The future of cryptocurrency in Australia thus appears even more interconnected with mainstream financial strategies, steering the country towards a new era of digital finance.

24 thoughts on “Australia Launches First Direct Bitcoin ETF

  1. The crypto scene just got a lot more exciting in Australia! Monochrome’s direct Bitcoin ETF is a game-changer.

  2. This sounds like another investment bubble waiting to burst. Why should we trust this any more than the last crypto crash?

  3. All the excitement around Bitcoin ETFs feels like a ticking time bomb. When will people learn?

  4. Direct exposure to Bitcoin under Australian regulations Monochrome has hit a home run with this ETF!

  5. Great, another way for people to get scammed out of their money in crypto. I wouldn’t touch it with a ten-foot pole.

  6. Direct Bitcoin holdings under Australian regulations this Monochrome ETF is a game-changer for crypto investors.

  7. The Monochrome Bitcoin ETF is a huge win for Australia’s financial market. Direct exposure and robust regulations are a promising combination.

  8. Major milestone for Australia’s financial markets. The Monochrome Bitcoin ETF brings direct Bitcoin exposure under safe conditions.

  9. Why does everyone think Bitcoin is a silver bullet? It’s still too unpredictable. Not jumping on this hype train. πŸ™…β€β™‚οΈπŸš‚

  10. Breaking barriers with Australia’s first direct Bitcoin ETF! Hats off to Monochrome for this pioneering effort.

  11. The Monochrome Bitcoin ETF is here and it’s ready to make history in Australia’s financial market. Keep pushing forward!

  12. All this hype around the ETF, but what happens when the market takes a downturn? People will panic sell. Not convinced this is a good thing.

  13. So tired of hearing about Bitcoin. When will people realize it’s not a stable investment? πŸ˜΄πŸ’€

  14. Finally, Australia aligns with global trends. A direct Bitcoin ETF on Cboe Australia is a monumental step. Great job, Monochrome!

  15. Wow, Australia’s first direct Bitcoin ETF! This is a game-changer for the country’s crypto market. Exciting times ahead!

  16. The regulations might be stronger, but the crypto market is still the Wild West. 🏜️ Not for me, thanks. 🀚

  17. Finally, a direct Bitcoin ETF in Australia. Monochrome is ahead of the curve. Can’t wait to see the impact on the market!

  18. A new era of digital finance in Australia! The Monochrome Bitcoin ETF is a well-anticipated debut. Let’s get investing!

  19. I dont get the hype. Bitcoin isnt even that practical as a currency, let alone as an investment.

  20. Bravo Monochrome! The first direct Bitcoin ETF in Australia opens new doors for investors. Can’t wait to see the impact!

  21. Kudos to Monochrome Asset Management for paving the way with Australia’s first direct Bitcoin ETF. Can’t wait for trading to start!

  22. Direct Bitcoin exposure under secure conditions the Monochrome Bitcoin ETF is a leap forward for Australian investors. Well done!

  23. Monochromes direct Bitcoin ETF is just what the Australian market needed. Big kudos to the team for making this a reality!

  24. Direct Bitcoin ETF in Australia is a big milestone. Thank you, Monochrome, for making this happen and pushing the crypto frontier forward!

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