First Bitcoin ETF Application Filed Under Newly Implemented Australian Regulations
Mitchell Nixon
Monochrome Asset Management Pty Ltd, a crypto-focused investment management firm, along with its partner Vasco Trustees Ltd, has submitted an updated application for the Monochrome Bitcoin ETF (IBTC) to the Australian Securities Exchange (ASX). The IBTC will be the first spot Bitcoin ETF in Australia’s new regulatory framework, providing direct exposure to Bitcoin.
In an official announcement on July 14, Monochrome Asset Management confirmed that Vasco Trustees, their partner with an Australian Financial Services License, has filed an updated application for the Monochrome Bitcoin ETF (IBTC) with the Australian Securities Exchange (ASX).
Vasco Trustees is authorised to offer retail investors regulated and direct exposure to Bitcoin (BTC) and Ethereum (ETH) through its partnership with Monochrome. The Monochrome Bitcoin ETF (IBTC) and the Monochrome Ethereum ETF are the two managed ETF investment products available.
Lately, there has been significant industry attention on spot Bitcoin ETF applications, especially within the United States. Over the past few weeks, major financial firms such as Fidelity, Invesco, Wisdom Tree, Valkyrie, and the $10 trillion asset management firm BlackRock have all filed spot Bitcoin ETF applications, contributing to the growing interest in this space.
Just in Europe last week, its inaugural spot Bitcoin set its sights on launching in 2023 too.
Blackrock’s bid for a spot Bitcoin ETF can be read here.
Fidelity’s bid for a spot Bitcoin ETF can be read here.
In a bid to become Australia’s first bitcoin ETF, Cosmos Asset Management launched its own bitcoin ETF last year, regardless of whether it was spot or not.
However, this particular ETF was structured as a fund of funds, providing exposure to one of Canada’s spot bitcoin ETFs managed by Purpose. Ultimately, Global X and 21Shares’ Bitcoin ETF claimed the title as the first to be listed in Australia, while Cosmos decided to delist its offering in November due to a lack of interest.
The Global X 21Shares Bitcoin ETF, which is still active today, operates through a wholesale-retail feeder fund structure. In this arrangement, a retail fund invests in a wholesale fund that directly holds bitcoin.
Monochrome’s CEO, Jeff Yew, took to Twitter to announce Australia’s entry into the race for a spot Bitcoin ETF. Yew emphasised the benefits of a Bitcoin ETF, stating that it allows investors to purchase and utilise the asset class according to their preferences within a regulated framework and operating within established regulatory boundaries.
In statements to CoinTelegraph, Yew stated “through a Bitcoin ETF, it makes it possible for them to buy and use the asset class in however they see fit with the investment choices [and] in a regulated manner, and also operating within the regular regulatory perimeter.”
“So that is the benefit, I guess, compared to, say, unregulated exchanges where there’s no investor protection,” he added.
The announcement highlights the strong support behind Monochrome and Vasco, with prominent service providers such as State Street Australia, Automic Pty Limited, Ernst & Young, CF Benchmarks, and Gemini Trust Company.
The Australian Securities and Investments Commission (ASIC) has implemented a comprehensive market framework for crypto-asset exchange-traded products. This framework establishes clear pathways and regulatory requirements for market participants offering financial products that provide direct exposure to crypto-assets. This development is expected to bolster the confidence of Australian investors when considering investments in this emerging asset class.