Monochrome to Launch Australia’s First Spot Bitcoin ETF

By: Isha Das

Introduction of Australia’s First Spot Bitcoin ETF

Monochrome Asset Management is set to make history with the launch of Australia’s first spot Bitcoin Exchange Traded Fund (ETF), Monochrome Bitcoin ETF (IBTC). Scheduled to commence trading on June 4, 2024, at 10:00 AM (AEST) on Cboe Australia, this ETF will provide investors with direct exposure to Bitcoin through a passive buy-and-hold strategy. The ETF will be listed under the ticker symbol IBTC and will track the CME CF Bitcoin Reference Rate – Asia-Pacific Variant.

Details of the IBTC Fund

With a management fee of 0.98%, Monochrome is positioning IBTC as a straightforward investment vehicle, without engagement in derivatives, leverage, or short selling. The fund aims to offer a streamlined entry point for investors interested in Bitcoin, contributing to a growing trend of spot Bitcoin ETFs globally.

“The Investment Manager will implement a strictly passive buy and hold investment strategy for bitcoin. The fund will not use derivatives, leverage, or short selling.”

Global Trends and Market Position

This launch aligns with a broader global trend where several major markets, including the United States, Hong Kong, and the United Kingdom, have approved spot Bitcoin ETFs. The introduction of IBTC is a significant milestone for Australian investors, providing regulated and accessible investment options in Bitcoin. Currently, Bitcoin is priced at AUD 103,810, reflecting its increasing popularity, with recent prices hitting an all-time high of over AUD 110,000 in March 2024.

Bitcoin's Year-To-Date Performance

Bitcoin has shown substantial year-to-date performance gains against various major currencies:

• BTC priced in Pounds (GBP): 56% increase
• BTC priced in US Dollars (USD): 56% increase
• BTC priced in Euros (EUR): 59% increase
• BTC priced in Australian Dollars (AUD): 60% increase
• BTC priced in Canadian Dollars (CAD): 62% increase
• BTC priced in Japanese Yen (JPY): 74% increase

The launch of Monochrome’s IBTC ETF is expected to further enhance the digital asset’s accessibility and appeal within the Australian market, aligning with global trends and providing a new avenue for Bitcoin investment.