On June 4, trading will commence for the spot Bitcoin ETF by Monochrome Asset Management on CBOE Australia. This follows the issuer’s receipt of an AFS license from the Australian Securities and Investments Commission, reports Cointelegraph.
The Monochrome Bitcoin ETF (IBTC) is the first and only product based on the leading cryptocurrency to be registered under the new crypto asset licensing category established in 2021.
Monochrome stated that the fund’s assets are held in a solution that complies with “Australian regulatory standards for institutional custodial activities.”
“Before IBTC, local investors could only invest in ETFs that indirectly held Bitcoin or through offshore products not covered by AFS licensing protection,” the Monochrome statement reads.
Unlike its counterparts in the US and Hong Kong, the company’s instrument allows for redemption in kind.
In an interview, Monochrome CEO Jeff Yew expressed anticipation of “significant interest” in IBTC, given the sustained interest in digital gold-based products in recent months.
The executive announced readiness to create and launch a spot ETF based on Ethereum.
“We are also exploring other opportunities in the cryptocurrency sector to meet investor demand,” he added.
Yew estimated a net inflow into local spot BTC-ETFs of $3 billion to $4 billion within the first three years.
Earlier, Bloomberg reported that the ASX might launch trading of spot Bitcoin-based exchange-traded funds by the end of 2024. The platform is several times larger than CBOE Australia, leading issuers of new instruments to anticipate significantly higher inflows.
Trading of IBTC in Australia will commence just over a month after the launch of four spot BTC-ETFs in Hong Kong.