Australia Joins the Crypto Wave: First Spot Bitcoin ETF Goes Live Tomorrow!

Following the footsteps of the US, the UK, Europe, and Asia Pacific Nations, Australia has now joined the ranks of countries offering spot Bitcoin ETF trading. This news has sparked hope in investors, as Bitcoin is gaining global recognition.

Keep reading to find out everything you need to know about Australia’s groundbreaking Bitcoin ETF!

Monochrome Bitcoin ETF Set to Launch

The Monochrome Bitcoin ETF (IBTC) is set to begin trading on the Cboe Australia exchange. This announcement has positively impacted Bitcoin’s price, pushing it up to $69,000 from its previous level of around $67,650.

On June 4th, 2024, Monochrome Asset Management will launch its spot Bitcoin ETF in Australia under the ticker IBTC, with a management fee of 0.98%.

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

Security and Tracking

The ETF will track the CME CF Bitcoin Reference Rate index, providing direct exposure to Bitcoin’s spot price. Monochrome ensures that IBTC’s holdings are stored offline in a device not connected to the internet, using a crypto custody solution that meets Australian institutional custody regulatory standards.

Enhanced Investor Protection

Before IBTC, Australian investors could only invest in ETFs that indirectly held Bitcoin or through offshore Bitcoin products, neither of which offered the investor protection provided by the directly held crypto asset AFS licensing regime. 

Cboe will be the first Australian exchange to list a Bitcoin ETF, ahead of the larger Australian Securities Exchange (ASX), which also plans to approve spot Bitcoin ETFs before the end of the year.

Understanding the Bitcoin Price Impact

The successful rollout of spot Bitcoin ETFs in major financial markets has set the stage for Australia to join the trend. Recent data indicates that Bitcoin (BTC) exchange-traded funds (ETFs) have attracted an inflow of $216 million. 

Meanwhile, BlackRock’s IBIT ETF saw the largest inflow, with $169.1 million, raising its total net inflow to $16.7 billion. Notably, Grayscale’s GBTC ETF experienced a significant outflow of $124.3 million, the largest since May 1.

As of now, Bitcoin’s price stands at $68,980, marking a 2.3% increase in the past 24 hours, with a market cap of $1.35 trillion.

With Bitcoin’s price on the rise, is this the right time to invest through an ETF? Share your investment strategies!

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