Key Takeaways
- Monochrome Bitcoin ETF is the first spot Bitcoin ETF under Australia’s new regulatory regime
- Monochrome Bitcoin ETF will offer retail Australian investors the opportunity to have direct exposure to BTC and ETH
Monochrome Asset Management Pty Ltd, a crypto-focused investment management firm, and its responsible entity partner Vasco Trustees Ltd have filed an updated application for the Monochrome Bitcoin ETF (IBTC) with the Australian Securities Exchange (ASX).
This application marks the first spot Bitcoin ETF under Australia’s new regulatory framework, enabling retail investors to have direct exposure to Bitcoin. Streamlining the buying process for investors, a Bitcoin exchange-traded fund (ETF) offers a convenient way to invest in Bitcoin without requiring the purchase of the actual asset.
According to the official announcement on July 14, Monochrome Asset Management stated that the Monochrome Bitcoin ETF (IBTC) will offer retail Australian investors the opportunity to have direct exposure not only to Bitcoin but also to Ether (ETH), the second-largest cryptocurrency by market capitalization.
The partnership with Vasco Trustees, who holds an Australian Financial Services Licence, allows for regulated exposure to Bitcoin (BTC) and Ethereum (ETH) for retail investors. The Monochrome Bitcoin ETF and the Monochrome Ethereum ETF are two managed ETF investment products offered through this collaboration.
Jeff Yew, the CEO of Monochrome, took to Twitter to announce Australia’s entry into the spot Bitcoin ETF race. He highlighted the benefits of a Bitcoin ETF, stating that it enables investors to purchase and utilize the asset class in a regulated manner while operating within the regular regulatory perimeter. Yew emphasized the significance of providing a single regulated structure that grants investors absolute entitlement to their underlying Bitcoin holdings.
Leading service providers such as State Street Australia, Automic Pty Limited, Ernst & Young, CF Benchmarks, and Gemini Trust Company are offering their support to Monochrome and Vasco in this venture. These partnerships aim to enhance the efficiency and reliability of the Monochrome Bitcoin ETF.
The latest development comes amid Spot Bitcoin ETF becoming all the rager in the crypto space as US Securities and Exchange Commission keeps refusing the ETF applications. Last month, asset management fund WisdomTree became the most recent investment firm to lodge a new filing for a spot Bitcoin ETF.
