On June 3, 2024, Monochrome Asset Management announced the launch of the Monochrome Bitcoin ETF (IBTC), marking a significant milestone as Australia's first Spot Bitcoin ETF.
Beginning trading on the Cboe Australia Exchange on June 4, this ETF allows investors to hold Bitcoin directly with the convenience and security of a regulated financial product.
With the rising popularity of cryptocurrency investment products, IBTC offers a new gateway for Australian investors to access the Bitcoin market.
Launch of Australia's First Spot Bitcoin ETF
On June 3, 2024, Monochrome Asset Management, an Australian investment management company, announced the commencement of trading for Australia's first Spot Bitcoin ETF, the Monochrome Bitcoin ETF (IBTC).
Trading began on June 4, 2024, on the Cboe Australia Exchange.
The Monochrome Bitcoin ETF (IBTC) is notable for being the first Spot Bitcoin ETF in Australia, holding Bitcoin (BTC) directly.
It is also regulated under an Australian Financial Services License (AFSL), adhering to the licensing rules for cryptocurrency ETFs.
Overview of Monochrome Bitcoin ETF (IBTC)
The Monochrome Bitcoin ETF employs a cryptocurrency custody solution that meets Australian institutional custody regulatory standards for storing the Bitcoin backing the ETF's value.
These assets are reported to be held offline using devices not connected to the internet.
Additionally, the investment manager of IBTC follows a "Buy & Hold" investment strategy. The fund's details page specifies that it does not use derivatives, leverage, or short selling.
In contrast to the cash-settled Bitcoin ETFs approved in the US this year, the IBTC is a physically-settled ETF.
The IBTC details page lists the following four benefits of purchasing IBTC instead of Bitcoin directly.
【Accessibility】
Purchasing IBTC allows investors to gain exposure to Bitcoin without worrying about the technical aspects of buying, storing, and safeguarding Bitcoin.
【Security】
IBTC secures Bitcoin through professional custodians, reducing the risk of theft or loss associated with self-custody.
【Regulatory Oversight】
As a regulated financial product in Australia, IBTC offers investors certain consumer protections that direct Bitcoin investments do not.
【Convenience】
Investors can buy and sell IBTC on the Cboe trading platform or through registries, making it easier to manage within a diverse investment portfolio.
With the recent surge in cryptocurrency investment products globally, it is expected that more funds will flow into the cryptocurrency market through these investment vehicles.
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