Monochrome Asset Management has introduced Australia’s first spot Bitcoin Exchange Traded Fund (ETF) on the CBOE exchange, providing a regulated framework for investors to access Bitcoin (BTC).
Known as IBTC, this ETF charges a management fee of 0.98% and operates under the supervision of the Australian Securities & Investments Commission (ASIC) to ensure investor protection and compliance to financial regulations.
This launch follows reports from late April suggesting the potential listing of a Bitcoin spot ETF on the Australian ASX stock exchange.
The spot ETF is designed to mirror BTC market prices and is validated by market participants. Monochrome collaborates with Gemini (a crypto exchange), as its Bitcoin custodian. The firm assures that investors hold legal rights to the Bitcoin in the fund and can request withdrawals:
“Investors have legal rights to their Bitcoin in the fund, with the ability to call for their Bitcoin to be withdrawn at their request.”
A spot crypto ETF tracks the price of a specific cryptocurrency and directs portfolio funds into that crypto. These ETFs are traded on public exchanges and maintained in standard brokerage accounts, similar to other ETFs.
Increasing Adoption of Bitcoin ETFs
In January, the U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs. By May, a Hong Kong exchange had listed spot Bitcoin and Ethereum ETFs, making this city the Asia’s crypto hub.
Recently, the U.S. House of Representatives also passed the Financial Innovation and Technology for the 21st Century Act (FIT21), suggesting that the country is strongly supporting the crypto industry.
With the recent move, Australia’s spot Bitcoin ETF marks another significant development in the global crypto derivatives market