Australian asset manager Monochrome plans to launch its flagship spot Bitcoin exchange-traded fund (ETF) on the global listing exchange Cboe Australia. Monochrome filed for the spot Bitcoin ETF in July 2023.
The Monochrome Bitcoin ETF, if approved, will become Australia’s first spot Bitcoin ETF to permit direct Bitcoin (BTC) holding.
Australian regulators have already greenlighted two exchange-traded products (ETPs) that give exposure to spot crypto assets on Cboe Australia, but these ETPs do not directly hold Bitcoin; instead, they invest in investment products with exposure to spot Bitcoin ETF.
To list their spot Bitcoin ETF in Australia, asset managers must first get approval from the securities regulator and then apply for an exchange listing.
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Monochrome has already received approval from the Australian Securities regulator ASIC and expects Cboe Australia to clear its application by June.
The asset manager was earlier slated to launch its spot Bitcoin ETF via Cboe rival ASX; however, Jeff Yew, Monochrome Asset Management CEO, told Cointelegraph that the selection of Cboe Australia as the listing venue for the Monochrome Bitcoin ETF aligns more “closely with our strategic vision, market reach and time frame.” 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 explained that the key difference between existing ETPs and the Monochrome spot Bitcoin ETF is it provides investors with a straightforward, transparent pathway to exposure. It is identical to “how spot Bitcoin ETFs are structured in the United States.”
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Spot Bitcoin ETFs have become a focus of major governments worldwide ever since the U.S. Securities and Exchange Commission approved 11 spot BTC ETFs on Jan. 11.
The successful launch of spot BTC ETFs in the U.S. has prompted other countries to consider the possibility of introducing similar products in their own markets.
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