Monochrome Targets Australia's First Spot Bitcoin ETF with Cboe Application

Australian asset manager Monochrome seeks to launch its flagship spot Bitcoin ETFs on Cboe Australia, potentially becoming the country's first Bitcoin fund to directly invest in BTC. Approval from Cboe is expected by June, following ASX's greenlight.

Monochrome Submits Application to Launch Australia's First Spot Bitcoin ETF

Sydney, Australia - Leading Australian asset manager Monochrome has submitted an application to the global listing exchange Cboe Australia to launch the nation's first spot Bitcoin exchange-traded fund (ETF). If approved, the Monochrome Bitcoin ETF would offer investors direct exposure to Bitcoin, marking a significant milestone in the development of Australia's digital asset market.

ASX Grants Approval, Cboe Review Pending

The Australian Securities Exchange (ASX) has already granted approval to Monochrome's application, paving the way for Cboe Australia to consider the listing. Monochrome is expecting the Cboe to clear the application by June 2023.

Shifting from ASX to Cboe

Initially, Monochrome intended to launch its spot Bitcoin ETF through ASX, a competing exchange to Cboe Australia. However, Jeff Yew, CEO of Monochrome Asset Management, explained that opting for Cboe Australia as the listing venue aligns better with the company's strategic vision, market reach, and timeline.

"We anticipate a decision from Cboe Australia about the Monochrome Bitcoin ETF before the middle of 2024," said Yew. "The Monochrome Bitcoin ETF stands to be the first Bitcoin ETF in Australia authorized to hold Bitcoin directly."

Direct Exposure to Bitcoin

Yew emphasized that the Monochrome spot Bitcoin ETF would differ significantly from existing exchange-traded products (ETPs) that offer exposure to spot crypto assets but do not hold Bitcoin directly. The Monochrome ETF would provide investors with a straightforward and transparent path to Bitcoin exposure, similar to the structure of spot Bitcoin ETFs in the United States.

Strong Demand for Spot Bitcoin ETFs

The launch of spot Bitcoin ETFs in the United States has been met with strong demand, with nine such ETFs recording total inflows exceeding $12.4 billion. The success in the US has prompted other nations, including Australia, to consider introducing similar products.

Global Expansion of Bitcoin ETFs

As the global cryptocurrency market continues to mature, spot Bitcoin ETFs are gaining traction as investors seek convenient and regulated access to this emerging asset class. Hong Kong and other markets are also exploring the feasibility of launching comparable Bitcoin funds.

Monochrome's Strategic Positioning

Monochrome is at the forefront of Australia's digital asset revolution, having launched the country's first Bitcoin and Ethereum ETPs in 2021. The company's move to launch a spot Bitcoin ETF demonstrates its commitment to providing investors with access to innovative investment opportunities in the blockchain space.

If approved, the Monochrome Bitcoin ETF would be a major milestone for Australia's digital asset sector, offering investors a direct and regulated way to invest in Bitcoin. The successful launch of the ETF would further legitimize the cryptocurrency market and attract additional investment from both retail and institutional investors.