Key Points
- Australian asset manager Monochrome plans to launch spot Bitcoin ETFs by July 2023.
- If approved, this would be Australia’s first Bitcoin fund to directly invest in BTC.
Monochrome, an Australian asset management firm, is aiming to launch spot Bitcoin ETFs by July 2023. This follows the successful introduction of the spot Bitcoin ETF in the US markets in January 2024, which has encouraged asset managers around the globe to consider similar investment products.
The Monochrome Bitcoin ETF, if approved, would be the first of its kind in Australia to directly invest in Bitcoin. Previously, Australian regulators have approved two exchange-traded products (ETPs) on Cboe Australia that are exposed to spot crypto assets. However, these ETPs don’t directly hold Bitcoin, but rather invest in investment products that have exposure to spot Bitcoin ETFs.
Approval and Listing Process
Before listing their spot Bitcoin ETFs in Australia, asset managers must first obtain approval from the securities regulator. The Australian Securities Exchange (ASX) has already given the green light to Monochrome, and it is expected that the Cboe will approve the application by June.
Monochrome initially intended to introduce its spot Bitcoin ETF through ASX, a competitor of Cboe. However, according to Jeff Yew, CEO of Monochrome Asset Management, choosing Cboe Australia as the listing venue for the Monochrome Bitcoin ETF aligns better with their strategic vision, market reach, and timeline. Yew anticipates a decision from Cboe Australia about the Monochrome Bitcoin ETF before mid-2024.
Spot Bitcoin ETF Demand
The demand for spot Bitcoin ETFs has been strong in the US, with BlackRock capturing the largest market share. To date, the nine spot Bitcoin ETFs have seen total inflows exceeding $12.4 billion. This success in the U.S. has prompted other countries to explore the possibility of launching similar products in their own markets, with regions like Hong Kong also looking into similar Bitcoin funds.
