AUSTRALIA GETS FIRST SPOT ETF THAT HOLDS BITCOIN DIRECTLY

Last updated: June 19, 2025, 20:55 | Written by: Chris Larsen

The landscape of cryptocurrency investment in Australia has just shifted dramatically.For the first time, Australian investors have access to a spot Bitcoin exchange-traded fund (ETF) that directly holds the underlying asset. Australia gets first spot ETF that holds Bitcoin directly . Australia is set to join Hong Kong, Canada and the U.S. in offering investors an ETF that invests in and directly holds Bitcoin. 847 Total views Listen to articleThis landmark event, spearheaded by Monochrome Asset Management, signifies a major step forward in legitimizing and simplifying Bitcoin exposure for a wider audience.The Monochrome Bitcoin ETF (IBTC) commenced trading on the Cboe Australia exchange on Tuesday, June 4th, marking a new era for digital asset investment in the country.This launch positions Australia alongside other forward-thinking nations like the United States, Canada, and Hong Kong, all of which already offer similar investment vehicles. Australia gets first spot ETF that holds Bitcoin directly Cointelegraph Blog all41author J 0What does this mean for the average Australian investor? Australia s first spot Bitcoin exchange-traded fund (ETF) which holds the asset directly is set to launch for trading when markets open on Tuesday. The Monochrome Bitcoin ETF (IBTC)It signifies a more regulated, accessible, and potentially less daunting pathway to participating in the Bitcoin market.Forget the complexities of self-custody or navigating unregulated exchanges; IBTC offers a familiar ETF structure within the existing financial framework.

Monochrome Bitcoin ETF: A Game Changer for Australian Investors

The launch of the Monochrome Bitcoin ETF (IBTC) is more than just a new investment product; it's a watershed moment for the Australian cryptocurrency market. Australia-based Monochrome Asset Management s Monochrome bitcoin { {BTC}} exchange-traded fund (ETF) (IBTC) will begin trading on the Cboe Australia exchange on Tuesday, the companyPrior to this, Australian investors had limited options for gaining exposure to Bitcoin through regulated channels. We anticipate a decision from Cboe Australia about the Monochrome Bitcoin ETF before the middle of 2025, said CEO Jeff Yew. The Monochrome Bitcoin ETF stands to be the first Bitcoin ETF in Australia authorized to hold Bitcoin directly. If approved, the ETF would provide local investors with direct exposure to bitcoin through aWhile some exchange-traded products offered exposure to crypto assets, they didn't directly hold Bitcoin.IBTC changes that. Australia's first spot Bitcoin ETF by Monochrome launches this week, enabling direct Bitcoin investment under new AFS licensing.By directly holding Bitcoin, the ETF aims to more closely track the actual price of Bitcoin, providing a more transparent and direct investment experience.

Key Features of the Monochrome Bitcoin ETF (IBTC)

Direct Bitcoin Holding: IBTC directly holds Bitcoin, offering investors exposure to the underlying asset's performance.
Trading on Cboe Australia: The ETF trades on the Cboe Australia exchange under the ticker IBTC, making it accessible to a wide range of investors.
Management Fee: The ETF carries a management fee of 0.98%. Australia-based Monochrome Asset Management s Monochrome bitcoin { {BTC}} exchange-traded fund (ETF) (IBTC) will begin trading on the Cboe Australia exchange on Tuesday, the company toldWhile this fee is a factor to consider, it represents the cost of managing the fund, ensuring security, and providing a regulated investment vehicle.
Regulated and Compliant: Operating under Australia's regulatory framework, IBTC offers a regulated and compliant way for investors to access Bitcoin.This provides a level of security and transparency that is often lacking in the unregulated cryptocurrency market.

How Does a Spot Bitcoin ETF Work?

Understanding how a spot Bitcoin ETF works is crucial for any potential investor. Australia gets first spot ETF that holds Bitcoin directly dfmines Cryptocurrency News JUnlike futures-based Bitcoin ETFs, which invest in Bitcoin futures contracts, a spot Bitcoin ETF directly purchases and holds actual Bitcoin.This means the ETF's price is directly tied to the current market price of Bitcoin.When the price of Bitcoin goes up, the value of the ETF also increases (minus fees and expenses), and vice versa.

Think of it like buying shares in a company that owns Bitcoin. Australia is set to launch its first spot ETF that directly holds Bitcoin, joining Hong Kong, Canada, and the U.S. in offering such investment opportunities. There is a scheduled maintenance window on June 28th starting at UTC.Instead of buying Bitcoin directly yourself, you're buying shares in a fund that does the buying and holding for you.The ETF manager is responsible for securely storing the Bitcoin and managing the fund to track the Bitcoin price as closely as possible.

Benefits of Investing in a Spot Bitcoin ETF

Accessibility: ETFs are easily accessible through traditional brokerage accounts, making it simple for investors to add Bitcoin exposure to their existing portfolios.
Convenience: You don't have to worry about the complexities of buying, storing, and securing Bitcoin yourself.The ETF manager handles all of that for you.
Regulation: Spot Bitcoin ETFs operate within a regulated framework, providing a level of investor protection that is not always available in the unregulated cryptocurrency market.
Liquidity: ETFs are typically highly liquid, meaning you can buy and sell shares easily on the exchange.
Diversification: Investing in a spot Bitcoin ETF allows you to diversify your portfolio by adding exposure to Bitcoin without having to invest a large sum of money directly in Bitcoin.

The Significance of Direct Bitcoin Holding

The fact that the Monochrome Bitcoin ETF *directly* holds Bitcoin is a crucial distinction. Australia is introducing its first spot ETF, following the lead of Hong Kong, Canada, and the U.S, offering investors the chance to directly invest in and hold Bitcoin.Previous crypto-related investment products in Australia often provided indirect exposure, which could lead to tracking errors and increased complexity. Australia already has two exchange-traded products providing exposure to spot crypto assets on Cboe Australia but they do not hold bitcoin directly. The company applied for a spot bitcoin (BTCBy directly holding the asset, IBTC aims to provide a more accurate and transparent reflection of Bitcoin's price movements. The Monochrome Bitcoin ETF will begin trading on the Cboe Australia exchange today, under the ticker IBTC, offering a new way for Australian investors to access bitcoin in a regulated and compliant manner.This direct exposure is a key driver for investors who seek to benefit directly from Bitcoin's price fluctuations without the intricacies of self-custody.

Why Direct Holding Matters

Reduced Tracking Error: Direct holding minimizes the potential for discrepancies between the ETF's price and the actual price of Bitcoin.
Increased Transparency: Investors can be confident that the ETF is backed by actual Bitcoin holdings.
Simplified Investment: The investment process is simplified, as investors are directly exposed to Bitcoin's performance.

Monochrome Asset Management: Pioneering Bitcoin Investment in Australia

Monochrome Asset Management has positioned itself as a pioneer in the Australian cryptocurrency market by launching the country's first spot Bitcoin ETF.This achievement underscores the company's commitment to providing innovative and regulated investment solutions for Australian investors.Monochrome's decision to launch IBTC reflects a growing demand for Bitcoin exposure within a regulated and secure framework.

Looking Ahead: Monochrome's Future Plans

Monochrome Asset Management isn't stopping with Bitcoin. Australia is set to launch its first spot ETF that directly holds Bitcoin, joining Hong Kong, Canada, and the U.S. in offering such investment opportunities.The company has expressed its intention to explore other cryptocurrency-based products, including an Ether ETF. Australia is set to join Hong Kong, Canada and the U.S. in offering investors an ETF that invests in and directly holds Bitcoin.This ambition demonstrates Monochrome's vision to become a leading provider of digital asset investment solutions in Australia.By expanding its product offerings, Monochrome aims to cater to a wider range of investor preferences and risk appetites.

The Global Trend: Australia Joins the Spot Bitcoin ETF Movement

Australia's launch of its first spot Bitcoin ETF aligns with a growing global trend.Countries like the United States, Canada, and Hong Kong have already approved and launched similar investment vehicles. Australian regulators have approved the first spot Bitcoin ETF. Monochrome is the first asset manager in the country to offer such a product. The Monochrome Bitcoin ETF will debut this week. Spot BItcoin ETFs have become the talk of the town following the runaway success of U.S.-based BTC ETF products, which debuted in January.This global acceptance of spot Bitcoin ETFs signifies a broader recognition of Bitcoin as a legitimate asset class and a growing demand for regulated and accessible investment options.

The US ETF Success Story: A Precedent for Australia?

The success of spot Bitcoin ETFs in the United States provides a compelling case study for Australia. Australia now officially has its first spot Bitcoin ETF that directly holds BTC. The Monochrome Asset Management s Bitcoin ETF (IBTC) just began trading as the Cboe Australia exchange opened. Trading under the ticker IBTC, the ETF carries a management fee of 0.98%.ETFs like BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) have attracted significant inflows, demonstrating strong investor demand.IBIT even surpassed Grayscale's Bitcoin Trust (GBTC) to become the world's largest spot Bitcoin ETF, highlighting a shift in investor preference for newer, more competitive options. Australia s first spot Bitcoin exchange-traded fund (ETF) which holds the asset directly is set to launch for trading when markets open on Tuesday.The Monochrome Bitcoin ETF (IBTC) will begin trading at markets open on the Cboe Australia exchange on Tuesday, June 4.Australia already has severalWhile the Australian market may differ, the US experience suggests that spot Bitcoin ETFs have the potential to attract significant capital and increase Bitcoin adoption.

Potential Risks and Considerations

While the launch of the Monochrome Bitcoin ETF offers exciting opportunities for Australian investors, it's crucial to acknowledge the potential risks and considerations associated with investing in Bitcoin and cryptocurrency in general.

Volatility

Bitcoin is known for its price volatility. Australia s first spot Bitcoinexchange-traded fund (ETF) which holds the asset directly is set to launch for trading when markets open on Tuesday.The value of Bitcoin can fluctuate significantly and rapidly, which can lead to substantial gains or losses for investors. Monochrome is set to launch Australia s first spot Bitcoin ETF with direct BTC holding tomorrow. The ETF IBTC marks a major breakthrough in Australia s cryptocurrency market. Monochrome Asset Management plans to explore other products, such as Ether ETF. The first Australian Bitcoin ETFInvestors should be prepared for the possibility of significant price swings and only invest what they can afford to lose.

Regulatory Uncertainty

The regulatory landscape for cryptocurrencies is still evolving, and changes in regulations could impact the value of Bitcoin and the operation of spot Bitcoin ETFs. Earlier today, it was announced that Australia s first Spot Bitcoin ETF will begin trading at markets open on the Cboe Australia exchange on Tuesday, June 4. This is the fourth market toInvestors should stay informed about regulatory developments and understand the potential implications for their investments.

Security Risks

While the ETF manager is responsible for securing the Bitcoin holdings, there are still potential security risks associated with storing and managing digital assets. Australia gets first spot ETF that holds Bitcoin directly ayman022 0 Comments Australia is set to join Hong Kong, Canada and the U.S. in offering investors an ETF that invests in and directly holds Bitcoin.Investors should understand these risks and consider them when making investment decisions.

Management Fees

The management fee of 0.98% charged by the Monochrome Bitcoin ETF can impact the overall returns for investors.Investors should factor in the management fee when evaluating the potential profitability of the investment.

Tips for Investing in the Monochrome Bitcoin ETF (IBTC)

If you're considering investing in the Monochrome Bitcoin ETF (IBTC), here are some tips to help you make informed decisions:

Do Your Research: Understand Bitcoin, spot Bitcoin ETFs, and the specific features and risks of IBTC before investing.
Assess Your Risk Tolerance: Bitcoin is a volatile asset, so assess your risk tolerance and only invest what you can afford to lose.
Diversify Your Portfolio: Don't put all your eggs in one basket. BlackRock s iShares Bitcoin Trust (IBIT) and Fidelity s Wise Origin Bitcoin Fund (FBTC) have attracted a substantial portion of their total ETF inflows this year, at 26% and 56% respectively. IBIT recently surpassed Grayscale s Bitcoin Trust (GBTC) as the world s largest spot Bitcoin ETF, highlighting a shift in investor preference.Diversify your portfolio by investing in a variety of asset classes.
Start Small: If you're new to Bitcoin investing, start with a small investment to get a feel for the market.
Stay Informed: Keep up-to-date on Bitcoin news, market trends, and regulatory developments.
Consider Long-Term Investing: Bitcoin can be a volatile asset in the short term, but it has the potential for long-term growth.Consider a long-term investment strategy.

The Future of Cryptocurrency Investment in Australia

The launch of the Monochrome Bitcoin ETF marks a significant milestone in the evolution of cryptocurrency investment in Australia.As the digital asset market continues to mature, we can expect to see more innovative and regulated investment products emerge, catering to a wider range of investor needs and preferences. Australia s first spot Bitcoin exchange-traded fund (ETF) which holds the asset directly is set to launch for trading when markets open on Tuesday. The Monochrome Bitcoin ETF (IBTC) will begin trading at markets open on the Cboe Australia exchange on Tuesday, June 4.The introduction of IBTC is likely to pave the way for increased adoption of Bitcoin and other cryptocurrencies among Australian investors.

What's Next for Digital Assets in Australia?

The future of cryptocurrency investment in Australia is likely to be shaped by several factors, including:

Regulatory Developments: Clear and consistent regulations will be crucial for fostering innovation and protecting investors.
Institutional Adoption: Increased institutional participation will lend further legitimacy and credibility to the cryptocurrency market.
Technological Advancements: Continued advancements in blockchain technology will drive new use cases and investment opportunities.
Investor Education: Educating investors about the risks and opportunities of cryptocurrencies will be essential for promoting responsible investment.

Conclusion: A New Chapter for Bitcoin Investment in Australia

The arrival of **Australia's first spot ETF that holds Bitcoin directly** signals a significant shift in the country's investment landscape.The Monochrome Bitcoin ETF (IBTC) offers a regulated, accessible, and transparent pathway for Australian investors to gain exposure to Bitcoin. Sydney-based Monochrome Asset Management has announced that trading will commence on 4 June for the first Australian ETF that directly holds Bitcoin. The fund called Monochrome Bitcoin ETF will be listed on the Cboe Australia exchange and trade under the ticker IBTC.While potential investors should carefully consider the inherent risks associated with Bitcoin and cryptocurrency investments, the launch of IBTC represents a major step forward in legitimizing and integrating digital assets into the mainstream financial system.This launch positions Australia as a key player in the global cryptocurrency market, alongside countries like the US, Canada, and Hong Kong.The direct Bitcoin holding, coupled with the ETF structure, provides a compelling investment option for those seeking to participate in the potential growth of Bitcoin in a regulated environment.With a management fee of 0.98%, investors should weigh the costs and benefits before making an investment decision.The introduction of this ETF is expected to pave the way for further innovation and adoption of digital assets in Australia, offering investors more diverse options and greater control over their financial futures.As Monochrome Asset Management explores future offerings, like an Ether ETF, the Australian market is poised for continued growth and evolution in the digital asset space.