Australia is set to join Hong Kong, Canada, and the U.S. in offering investors an ETF that directly holds Bitcoin.
Australia‘s first spot Bitcoin exchange-traded fund (ETF) — which directly holds the asset — is set to begin trading on Tuesday.
The Monochrome Bitcoin ETF (IBTC) will start trading when markets open on the Cboe Australia exchange on Tuesday, June 4.
Monochrome’s Groundbreaking Launch
While Australia already has several exchange-traded products offering exposure to Bitcoin, Monochrome Asset Management is the first to receive approval under a new crypto asset licensing category created under Australian Financial Services (AFS) licensing rules in 2021.
This approval allows the ETF to hold Bitcoin directly. Monochrome has assured that IBTC’s holdings are stored offline in a device not connected to the internet and with a crypto custody solution that meets “Australian institutional custody regulatory standards.”
“Before IBTC, Australian investors could only invest in ETFs that indirectly hold Bitcoin or through offshore Bitcoin products, neither of which benefit from the investor protection rules under the directly held crypto asset AFS licensing regime,” Monochrome stated.
Unlike its counterparts in the United States, which are cash-settled, the ETF allows in-kind redemption from investors.
Strong Market Anticipation
Monochrome CEO Jeff Yew expects “strong interest” in the ETF, given the consistent growth of indirect Bitcoin ETF products in recent months. He confirmed that the firm is “ready” to build and launch an Ether (ETH) ETF, which will also directly hold the asset.
“We are also exploring other thematic opportunities within the digital asset sector to meet investor demand,” Yew added.
Summary Review: The launch of Australia’s first spot Bitcoin ETF represents a significant milestone in the country’s financial market, offering investors direct exposure to Bitcoin with the added security of local regulatory standards. Monochrome’s initiative is set to enhance the investment landscape by providing more options and protection for investors.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
