Australia Launches First Spot ETF Holding Bitcoin Directly on Cboe Exchange

Australia is set to launch its first spot Bitcoin ETF on June 4, allowing investors to hold Bitcoin directly, a significant step forward in the nation's crypto market.

Monochrome Bitcoin ETF Launches June 4, Offering Direct Bitcoin Exposure

According to Cointelegraph, the Monochrome Bitcoin ETF (IBTC) will commence trading on the Cboe Australia exchange at market opening on June 4.

Although Australia already has several exchange-traded products that provide exposure to Bitcoin, Monochrome Asset Management is the first to receive approval under Australian Financial Services (AFS) licensing regulations for a new crypto asset licensing category in 2021.

It permits the ETF to possess Bitcoin directly. Monochrome stated that IBTC is stored offline, on a device not connected to the internet, with a crypto custody solution that satisfies the specified criteria, "Australian institutional custody regulatory standards."

"Before IBTC, Australian investors were only able to invest in ETFs that indirectly hold Bitcoin or through offshore Bitcoin products, both of which don't benefit from the investor protection rules under the directly held crypto asset AFS licensing regime," Monochrome said in a statement.

In contrast to its U.S. counterparts, which are created in currency, the ETF permits investors to redeem it in kind.

Monochrome CEO Predicts Strong Demand for Australia's First Spot Bitcoin ETF and Future Ether ETF

According to Monochrome CEO Jeff Yew, the consistent growth of indirect Bitcoin ETF products in recent months indicates "strong interest" in his firm's ETF. Yew told Cointelegraph as much.

He verified that the company is "prepared" to construct and introduce an Ether ETF to hold the entire asset.

"We are also exploring other thematic opportunities within the digital asset sector to meet investor demand," he added.

A month has passed since the April 30 launch of four spot Bitcoin ETFs in Hong Kong before IBTC was introduced in Australia.

Nevertheless, three of the four Hong Kong ETFs have experienced cumulative net outflows since their inception, except for the spot Bitcoin ETF offered by Bosera.

With a cumulative inflow of $13.9 billion, U.S. Bitcoin ETFs have performed better, although $17.9 billion in outflows from the Grayscale Bitcoin Trust have negated this improvement.

Yew stated that Australia was a "very crypto-heavy country" and anticipates that within the first three years, local spot Bitcoin ETFs will generate between $3 billion and $4 billion in net inflows.

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