Australian asset manager Monochrome is set to make history by launching the nation’s first spot bitcoin exchange-traded fund (ETF) that holds physical bitcoin. The firm has filed an application with securities exchange Cboe Australia to list its flagship bitcoin ETF product, with expectations of approval by mid-2024.
Unlike previous bitcoin exchange-traded products in Australia, Monochrome’s ETF would hold actual bitcoin, similar to the successful spot bitcoin ETFs in the United States. The Australian Securities and Investments Commission has already given the green light to Monochrome’s proposal, and Cboe Australia is currently reviewing the application.
“We anticipate a decision from Cboe Australia about the Monochrome Bitcoin ETF before the middle of 2024,” 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 a regulated investment vehicle. Monochrome selected Cboe for its strategic expertise and extensive reach across Asia, pivoting from its original plan to list on ASX.
Australia’s entry into the spot bitcoin ETF market could further legitimize Bitcoin as an investable asset class, tapping into growing institutional demand as the industry matures. The fund’s launch just before Bitcoin’s next halving event is expected to generate significant interest, with Monochrome poised to dominate the local ETF space as the first to hold physical bitcoin.
