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Monochrome Asset Management has launched Australia’s first spot Bitcoin Exchange Traded Fund (ETF) on the CBOE exchange, providing investors with a regulated framework to access Bitcoin (BTC).
The ETF in question — listed as IBTC — has a management fee of 0.98% and is overseen by the Australian Securities & Investments Commission (ASIC) to ensure investor protection and compliance with financial regulations. The news follows late April reports that a Bitcoin spot ETF could soon be visible on the Australian ASX stock exchange.
The spot ETF is designed to mirror BTC market prices and be validated by market participants. Monochrome collaborates with the crypto exchange Gemini as its custodian for Bitcoin, and the firm clearly states that investors have legal rights to their Bitcoin in the fund:
Investors have legal rights to their Bitcoin in the fund, with the ability to call for their Bitcoin to be withdrawn at their request.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 invests portfolio funds into that crypto. These funds are traded on public exchanges and are kept in standard brokerage accounts, similar to other ETFs.
Growing adoption of Bitcoin ETFs
In January, 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 May, a Hong Kong exchange-listed spot Bitcoin and Ethereum ETFs, positioned the city as a leader in Asia for adopting crypto as a main investment.
The U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling that the United States welcomes the crypto industry. Australia’s introduction of a spot Bitcoin ETF is just the latest milestone reported by such crypto derivatives worldwide.
