Monochrome, an Australian asset manager, has announced its plans to launch a spot Bitcoin exchange-traded fund (ETF) on Cboe Australia, a global listing exchange. The company filed for the spot Bitcoin ETF in July 2023. If approved, the Monochrome Bitcoin ETF will be the first of its kind in Australia to allow direct holding of Bitcoin (BTC).
While Australian regulators have given the green light to two exchange-traded products (ETPs) that provide exposure to spot crypto assets on Cboe Australia, these ETPs do not directly hold Bitcoin. Instead, they invest in investment products with exposure to spot Bitcoin ETFs.
To list their spot Bitcoin ETF in Australia, asset managers must first obtain approval from the securities regulator and then apply for an exchange listing. Monochrome has already received approval from the Australian Securities Exchange (ASX) and expects Cboe Australia to approve its application by June.
Initially, Monochrome had planned to launch its spot Bitcoin ETF through ASX, a rival of Cboe Australia. However, Jeff Yew, CEO of Monochrome Asset Management, stated that selecting Cboe Australia as the listing venue for the Monochrome Bitcoin ETF aligns more closely with their strategic vision, market reach, and time frame.
Yew explained that the main difference between existing ETPs and the Monochrome spot Bitcoin ETF is that it provides investors with a straightforward and transparent pathway to exposure, similar to how spot Bitcoin ETFs are structured in the United States.
Spot Bitcoin ETFs have garnered attention from governments worldwide since the U.S. Securities and Exchange Commission approved 11 spot BTC ETFs on January 11. The successful launch of spot BTC ETFs in the U.S. has prompted other countries to consider introducing similar products in their own markets.