Australia is set to join the growing list of countries offering a spot Bitcoin exchange-traded fund (ETF), with the launch of the country’s first such product expected tomorrow.
JUST IN: ?? Australia's first spot #Bitcoin ETF to go live tomorrow.
Are you prepared? ? pic.twitter.com/EfKqdMU48P
— Bitcoin Magazine (@BitcoinMagazine) June 3, 2024
Monochrome Asset Management announced that Bitcoin ETF (IBTC) will begin trading on June 4th, pending any last-minute delays. The ETF will trade under the ticker IBTC and carry a management fee of 0.98%.
Monochrome Asset Management, the issuer, offers the fund as a means for investors to gain exposure to Bitcoin in a regulated framework. The ETF tracks the CME CF Bitcoin Reference Rate index, providing exposure tied directly to the spot price of bitcoin.
Cboe will become the first Australian exchange to list a bitcoin ETF, beating the larger Australian Securities Exchange (ASX) to the market. However, according to reports, the ASX is also planning to approve spot Bitcoin ETFs before the year’s end.
The launches tap into surging interest following the breakthrough regulatory approval of Bitcoin ETFs in the US market this January. Those products ignited massive inflows from both institutional and retail investors.
Australia is now poised to follow suit in offering investors easy and secure exposure to bitcoin without direct ownership. As a strictly passive ETF, IBTC removes the technical challenges of buying real Bitcoin while providing the return profile tied to bitcoin’s price.
Regulated Bitcoin ETFs have launched this year across North America, UK, Europe and Asia-Pacific. Australia’s entrance reflects the broader embrace of Bitcoin as an institutional asset class.
Other countries are likely to follow, with major markets now offering spot Bitcoin ETFs. The regulated wrapper provides legitimacy and gives investors a straightforward way to gain exposure.