The Australian Securities Exchange (ASX) has already granted approval to Monochrome thereby expecting the Cboe to clear the application by June.
With the tremendous success of the spot Bitcoin ETF launch in the US markets in January 2024, asset managers worldwide are now working to bring the Bitcoin investment product to their home country. As per the latest reports, Australian asset manager Monochrome is looking to launch the flagship spot Bitcoin ETFs by July 2023, on the global listing exchange Cboe Australia.
If approved, the Monochrome Bitcoin ETF would be Australia’s first Bitcoin fund to directly invest in BTC. So far, the regulators in Australia have green-lighted two exchange-traded products (ETPs) running on Cboe Australia with exposure to spot crypto assets. However, these ETPs do not hold Bitcoin directly, instead, they invest in investment products having exposure to spot Bitcoin ETFs.
For listing their spot Bitcoin ETFs in Australia, asset managers first need to get approval from the securities regulator before applying for the exchange listing. The good thing is that the Australian Securities Exchange (ASX) has already granted approval to Monochrome thereby expecting the Cboe to clear the application by June.
The asset manager originally planned to introduce its spot Bitcoin ETF through ASX, a competitor of Cboe. However, Jeff Yew, CEO of Monochrome Asset Management, revealed that opting for Cboe Australia as the listing venue for the Monochrome Bitcoin ETF better aligns with their strategic vision, market reach, and timeline. Yew added:
“We anticipate a decision from Cboe Australia about the Monochrome Bitcoin ETF before the middle of 2024. The Monochrome Bitcoin ETF stands to be the first Bitcoin ETF in Australia authorized to hold Bitcoin directly.”
Yew also explained the major difference between Monochrome spot Bitcoin ETF and existing ETPs while providing investors with a straightforward transparent path to BTC exposure. It is identical to “how spot Bitcoin ETFs are structured in the United States”.
Spot Bitcoin ETF Demand
The first two months witnessed solid demand for spot Bitcoin ETFs in the US with BlackRock taking the largest share of the pie. so far, the nine spot Bitcoin ETFs have recorded total inflows upwards of $12.4 billion.
The successful debut of spot BTC ETFs in the US has spurred other nations to contemplate the feasibility of introducing comparable products in their respective markets. Other markets like Hong Kong are also exploring similar Bitcoin funds in their region.
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