Bitcoin ETF Application Updated in Australia
First Bitcoin ETF application sees a new update as Monochrome Asset Management Pty Ltd, a crypto investment management firm, partners with Vasco Trustees Ltd. The partnership aims to submit an updated application for the Monochrome Bitcoin ETF (IBTC) to the Australian Securities Exchange (ASX). The IBTC strives to become Australia’s first spot Bitcoin ETF under the new regulatory framework, offering direct exposure to Bitcoin.
Monochrome Asset Management announced on July 14 that Vasco Trustees, their partner holding an Australian Financial Services License, has submitted an updated application for the Monochrome Bitcoin ETF (IBTC) to the Australian Securities Exchange (ASX).
Vasco Trustees is authorized 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.
There has been considerable industry attention on spot Bitcoin ETF applications, especially in the United States. Major financial firms like 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.
Europe’s inaugural spot Bitcoin ETF has also set its sights on launching in 2023.
Read about Blackrock’s bid for a spot Bitcoin ETF here.
Fidelity’s bid for a spot Bitcoin ETF can be found here.
In a bid to become Australia’s 1st bitcoin ETF, Cosmos Asset Management launched its own bitcoin ETF last year, regardless of whether it was a spot ETF 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, 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, announced Australia’s entry into the race for a spot Bitcoin ETF on Twitter. Yew emphasized the benefits of a Bitcoin ETF, stating that it allows investors to purchase and utilize 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 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.
