Australia is launching the first Bitcoin exchange-traded fund (ETF) that directly owns the cryptocurrency. This ETF, the Bitcoin ETF (IBTC), will be available for trading on the Cboe Australia exchange from Tuesday 4 June.
While Australia already has several exchange-traded products that provide exposure to Bitcoin, Mono Asset Management is the first company to gain approval under a new licensing class for crypto assets. This category was introduced in 2021 under the Australian Financial Services (AFS) rules.
The ETF allows investors to own Bitcoin directly. IBTC's bitcoin is stored offline in an offline device, with the cryptocurrency custody solution meeting “Australian institutional custody regulatory standards,” Monochrome said.
“Prior to the launch of IBTC, Australian investors could only invest in ETFs that held bitcoin indirectly or through foreign bitcoin products. Neither option benefits from investor protection rules under the AFS licensing regime for crypto assets,” Monochrome said in a statement. Directly owned.
Monochrome CEO Yew says Australia is a “very crypto-oriented country” and expects local Bitcoin ETFs to generate net inflows of between $3 billion and $4 billion in the first three years.
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