Thomas Daniels
The Monochrome Bitcoin ETF, listed under the ticker IBTC, will commence trading on the Cboe Australia exchange. With a management fee of 0.98%, Monochrome Asset Management offers this fund to provide investors with access to Bitcoin within a regulated framework. This framework, overseen by the Australian Securities & Investments Commission (ASIC), ensures investor protection and compliance with financial regulations.
Monochrome Asset Management has assured that investors possess legal rights to their Bitcoin (BTC) within the fund and can request withdrawals. This ETF is the first and only fund in Australia to hold Bitcoin directly, making Cboe the pioneer exchange in the country to offer a Bitcoin ETF. The Australian Securities Exchange (ASX) is also aiming to approve spot Bitcoin ETFs by the end of the year.
Designed to mirror BTC market prices, the ETF is crafted to withstand market manipulation and be validated by market participants. Monochrome collaborates with the crypto exchange Gemini as its custodian for Bitcoin.
A spot crypto ETF tracks the price of a specific cryptocurrency and allocates portfolio funds directly into that crypto. Traded on public exchanges, these funds generally follow a particular crypto’s price movements. Like traditional ETFs, crypto ETFs can be held in standard brokerage accounts, providing a familiar investment vehicle for traditional investors.
Bitcoin ETF Adoption
The introduction of this spot ETF comes at an opportune moment for the crypto industry, especially given the favorable political and global landscape. Early 2024 saw the U.S. Securities and Exchange Commission approve several spot Bitcoin ETFs for listing on all registered national exchanges in the U.S.
In mid-April, Hong Kong conditionally authorized its first spot Bitcoin and Ethereum ETFs, positioning the city as a leading hub in Asia for crypto investment. Furthermore, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling a welcoming stance toward the crypto industry.
