Monochrome Launches Australia’s First Bitcoin ETF under Crypto Licensing Rules

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SYDNEY, 4 June, 2024 – Monochrome Asset Management is proud to announce the official launch of the Monochrome Bitcoin ETF (IBTC), Australia's first exchange traded fund (ETF) that holds bitcoin directly.

The Monochrome Bitcoin ETF will begin trading on the Cboe Australia exchange today, under the ticker ‘IBTC’ (CBOE:IBTC), offering a new way for Australian investors to access bitcoin in a regulated and compliant manner.

Investing in bitcoin is volatile and high risk. In deciding whether to acquire an interest in IBTC, investors should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD), and consider if the investment is appropriate for their circumstances.

IBTC is accessible via most Australian stock brokerage apps and platforms. Look for ‘IBTC’ on your brokerage app or share investing platform.

Licensing

The Monochrome Bitcoin ETF (IBTC) is authorised under a crypto-asset licensing category under the Australian Financial Services Licensing (AFSL) regime.

This licensing category was introduced on October 29, 2021 to ensure responsible entities who hold substantial portions of crypto assets in a retail fund adhere to specific investor protection rules surrounding crypto assets.

IBTC is the first and only exchange traded fund in the market to be authorised under the crypto asset licensing category. Prior to IBTC, Australian investors were only able to invest in ETFs that indirectly hold bitcoin or through offshore bitcoin products, both which do not benefit from the investor protection rules under the directly held crypto asset AFS licensing regime.

The introduction of IBTC marks a significant milestone for Australian financial markets and its investor community.

Benchmarking

IBTC utilises the CF Benchmarks Ltd CME CF Bitcoin Reference Rate Asia Pacific Variant as its bitcoin price benchmark.

This ensures investors benefit from a transparent and robust pricing mechanism that is resistant to market manipulation. IBTC’s price benchmark adheres to International Organisation of Securities Commissions (IOSCO) benchmarking standards.

Custody

IBTC's bitcoin holdings are stored completely offline in a secure device that is not connected to the Internet, under a regulated crypto asset custody solution that meets Australian institutional custody regulatory standards.

Jeff Yew, CEO of Monochrome Asset Management, stated, "We are excited to bring the Monochrome Bitcoin ETF (IBTC) to market. IBTC holds bitcoin directly - a first in Australia. This aligns with Monochrome’s investor protection-driven mission to offer secure, compliant, and straightforward pathways to participate in this transformative space."

For more information about the Monochrome Bitcoin ETF (IBTC), please visit the product page here.

About Monochrome

Monochrome Asset Management is a leading asset management firm specialising in digital assets. The firm is committed to providing innovative investment solutions that meet the highest standards of security and regulatory compliance.

For media enquiries, please contact pr@monochrome.co


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