Australia is set to launch its first spot Bitcoin exchange-traded fund (ETF). Monochrome Asset Management is heading the project, offering the ETF as a regulated investment vehicle designed to provide investors direct exposure to Bitcoin.
Bitcoin ETFs are a growing trend globally with other recent approvals in the EU and Hong Kong.
Details of the New Bitcoin ETF
The ETF, set to begin trading tomorrow, will be listed on Cboe, making it the first Australian exchange to host a Bitcoin ETF. Cboe is getting out ahead of the larger Australian Securities Exchange (ASX), which is also expected to approve its own spot Bitcoin ETFs later this year. The new ETF tracks the CME CF Bitcoin Reference Rate index, which is closely tied to the spot price of Bitcoin, offering investors a transparent and straightforward way to invest in this digital currency.
Advantages of the Spot Bitcoin ETF
The launch of this ETF is timely, following the enthusiastic reception of Bitcoin ETFs in the United States earlier this year. These U.S. products have seen substantial investments from both institutional and retail sectors, indicating a demand for regulated Bitcoin investment options. Australia’s new ETF is designed to cater to this demand, providing easy and secure access to Bitcoin investments without the complexities and risks associated with direct ownership.
Simplifying Bitcoin Investment
The ETF is structured as a strictly passive investment tool, which eliminates the technical challenges involved in purchasing and holding actual Bitcoin. Not only simplifies the investment process but also aligns with the return profile directly linked to Bitcoin’s market price. For investors looking for exposure to Bitcoin, this ETF offers an ideal solution.
As Australia steps into the realm of Bitcoin ETFs, it allows investors seeking financial freedom and secure investment options in digital assets. It’s expected to continue the process for further innovations and adoption of cryptocurrency-based financial products, Bolstering Australia’s place in the financial market.
If you prefer to hold your own Bitcoin, you can do so by purchasing bitcoin directly at one of our ATMs in Australia. Click here to learn more.
