Aussie Innovation: Launch of the Spot Bitcoin ETF

The current phase of this bull market seems to be slower than a sleepy koala. If you haven’t been involved in chasing the latest meme coins, there hasn’t been much to do. But in the background, nations have become super bullish on Bitcoin.

Australia is the latest nation to become Bitcoin Bulls with the launch of a spot Bitcoin ETF slated for June 4th, 2024, called the Monochrome Bitcoin ETF (IBTC).

Let’s take a closer look at the details of this ETF and give an update on the nations and territories with current spot Bitcoin ETF offerings.

The Monochrome Bitcoin ETF (IBTC)

Key Details

• IBTC is issued by Monochrome Asset Management and will trade under the ticker IBTC.
• It will track the CME CF Bitcoin Reference Rate index, providing direct exposure to the spot price of Bitcoin.
• IBTC will have a management fee of 0.98% and employ a passive buy-and-hold strategy without using derivatives, leverage, or short selling. (CryptoSlate)
• Before IBTC, Australian investors could only access Bitcoin indirectly through offshore products or local ETFs that did not directly hold BTC. (Bitcoinist)
• IBTC is the first ETF in Australia to hold Bitcoin directly, offering investor protection under the Australian Financial Services Licensing (AFSL) regime. (Cointelegraph)
• The approval process for IBTC was relatively swift, with Monochrome applying in April 2024 after the US approved spot Bitcoin ETFs earlier this year. (YahooFinance)
• Monochrome’s CEO Jeff Yew expects strong interest in IBTC given the consistent growth of indirect Bitcoin ETF products and anticipates net inflows of $3-4 billion within the first three years. (Cointelegraph)

Other Countries/Territories with Spot Bitcoin ETFs

Other notable countries/territories include The United States, Canada, Germany, Brazil, Switzerland, Hong Kong, Jersey, Liechtenstein, Guernsey, and Bermuda (CoinGecko).

The adoption of spot Bitcoin ETFs by numerous countries and territories signifies a growing acceptance and mainstreaming of cryptocurrency within the global financial system. This trend highlights the increasing confidence among investors and regulators in Bitcoin’s stability and potential as an asset class.

The proliferation of these ETFs reflects a broader shift towards legitimizing and integrating digital currencies into traditional investment portfolios. This movement provides more secure and regulated avenues for investing in Bitcoin and also paves the way for further innovations in the financial sector, likely transforming the way people perceive and utilize digital assets worldwide.

What’s Ahead?

In addition to more nations and territories adopting spot Bitcoin ETFs, I’m guessing you can expect increased worldwide adoption of Ethereum because the U.S. SEC recently approved the sale of spot Ethereum ETFs. The decision allows for the listing and trading of several spot Ether ETFs on major exchanges such as Nasdaq, CBOE, and NYSE.

Although the law now permits the trading of spot Ether ETFs, trading won’t begin immediately. Issuers must first obtain approval from the SEC for individual ETF registration statements, which include detailed investor disclosures. The timeline for the SEC’s approval process remains uncertain. Either way, this is incredibly bullish for the United States and worldwide crypto adoption. There is already speculation as to which tokens will get the next ETF approvals, with many people suggesting $XRP, $SOL, and possibly even $Avax (one can dream).

Final Thoughts

Numbers vary, but approximately 40-50 million people in the United States have owned, or are currently invested in the crypto market. This is not an insignificant number and with the rise of mainstream crypto trading, we can expect to see this number increase in the future. This is a special moment – perhaps for the first time in history, retail investors will likely have their bags pumped by Wall Street. Can you think of a better scenario?

Cheers!