Monochrome Asset Management is set to pioneer Australia’s first spot Bitcoin exchange-traded fund (ETF), marking a significant milestone in the country’s cryptocurrency investment landscape. Slated for listing on Cboe Australia within the next two months, this initiative follows Monochrome’s application filing for the ETF in July 2023, aiming to offer investors direct exposure to physical Bitcoin, akin to similar products in the United States.
A Strategic Shift to Cboe Australia
Initially proposed to launch via the Australian Securities Exchange (ASX), Monochrome has pivoted to Cboe Australia, a decision driven by strategic alignment, market reach, and timing considerations. Jeff Yew, CEO of Monochrome Asset Management, expressed confidence in Cboe Australia’s approval process, anticipating a green light for the ETF by mid-2024. This strategic move underscores Monochrome’s commitment to broadening access to Bitcoin investment opportunities in Australia, aligning closely with global trends in cryptocurrency ETF offerings.
Distinction from Existing ETPs
Unlike the existing exchange-traded products (ETPs) on Cboe Australia, which indirectly invest in spot Bitcoin through other investment vehicles, the Monochrome Bitcoin ETF will directly hold Bitcoin. This approach promises a more straightforward and transparent investment pathway for individuals seeking exposure to Bitcoin’s potential returns. Yew highlighted the similarity of Monochrome’s ETF structure to those available in the United States, emphasizing its potential to simplify the investment process for Australian investors.
Global Momentum for Spot Bitcoin ETFs
The global interest in spot Bitcoin ETFs has surged following the U.S. Securities and Exchange Commission’s approval of 11 such ETFs in early 2023. This regulatory milestone has inspired asset managers worldwide to explore the introduction of comparable products in their respective markets, aiming to provide investors with regulated, direct access to Bitcoin investments.
