- On the Cboe Australia market, trading for the Monochrome Bitcoin ETF will commence.
The ETF, which is represented by the symbol IBTC, will have a 0.98% management fee. The fund’s issuer, Monochrome Asset Management, makes it available to investors so they can use Bitcoin in a controlled setting.
The Australian Securities & Investments Commission (ASIC) is in charge of this system, which guarantees investor protection and adherence to financial laws.
According to the company, investors can request withdrawals and have legal rights to their Bitcoin (BTC) in the fund. In Australia, this is the first and only ETF that directly owns Bitcoin.
Prior to the ASX, which also hopes to approve spot Bitcoin ETFs by the end of the year, Cboe will be the first exchange in Australia to offer a Bitcoin ETF.
The spot ETF is designed to replicate the prices on the Bitcoin market, be resistant to manipulation, and be approved by other market players. As the custodian of Bitcoin, Monochrome works with Gemini, an online cryptocurrency exchange.
Portfolio money are invested in a particular cryptocurrency by a spot crypto exchange-traded fund (ETF) that tracks its price. These funds often track a certain cryptocurrency but are traded on open exchanges. Crypto ETFs are available on ordinary stock markets, just like other funds, and investors can hold them in their typical brokerage accounts.
Adoption of Bitcoin ETF
The launch of this spot ETF is timely for the cryptocurrency market, particularly in light of current political and geopolitical developments.
The U.S. Securities and Exchange Commission approved the listing of multiple spot Bitcoin ETFs on all U.S. registered national exchanges in early 2024.
Hong Kong became the first city in Asia to embrace cryptocurrency as a primary investment when it conditionally approved its first spot Bitcoin and Ethereum ETFs in mid-April.
Additionally, the Financial Innovation and Technology for the 21st Century Act (FIT21) was enacted by the US House of Representatives, letting the cryptocurrency business know that the US is open to the market.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
