The Monochrome Bitcoin ETF is set to begin trading on the Cboe Australia exchange. Listed as IBTC, the ETF will have a management fee of 0.98%. Monochrome Asset Management, the issuer, offers this fund to enable investors to access Bitcoin within a regulated framework.

This framework, overseen by the Australian Securities & Investments Commission (ASIC), ensures investor protection and compliance with financial regulations. The company has stated that investors have legal rights to their Bitcoin (BTC) in the fund and can request withdrawals. This ETF is the first and only one in Australia to hold Bitcoin directly. Cboe will be the first exchange in Australia to offer a Bitcoin ETF, ahead of the ASX, which also aims to approve spot Bitcoin ETFs by the end of the year.

This is the last day Australia doesn’t have a spot Bitcoin ETF: Monochrome launching tomorrow!

The key difference for Monochrome over foreign ETFs is that it allows investors to actually withdraw their Bitcoin. The spot ETF is designed to mirror BTC market prices, withstand 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 invests portfolio funds into that crypto. These funds are traded on public exchanges but generally track a particular crypto. Like similar funds, crypto ETFs are on regular stock exchanges, and investors can keep them in their standard brokerage accounts.

This spot ETF announcement comes at a positive time for the crypto industry, especially from a political and global perspective. In early 2024, the U.S. Securities and Exchange Commission approved several spot Bitcoin ETFs to be listed on all registered national exchanges in the U.S.

In mid-April, Hong Kong conditionally authorized its initial spot Bitcoin and Ethereum ETFs, positioning the city to take the lead in Asia as the first to adopt crypto as a main investment.

The U.S. House of Representatives also passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling to the crypto industry that the United States is open to crypto.

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