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Australia's Monochrome applies for spot Bitcoin ETF with Cboe

Apr. 5, 2024

Monochrome Applies for Approval of Flagship Spot Bitcoin ETF Product

Asset managers discussing their application for a spot Bitcoin ETF in Australia

Australia-based Monochrome Asset Management has applied for a spot Bitcoin (BTC) exchange-traded fund (ETF) with Cboe Australia, the global listing exchange. If approved, the Monochrome Bitcoin ETF could become the first spot Bitcoin ETF in Australia to allow direct holding of Bitcoin.

According to the announcement made on Friday, Monochrome Asset Management has selected Cboe Australia as the listing venue for its flagship product, the Monochrome Bitcoin ETF. The firm chose Cboe Australia because it aligns with its strategic goals to work with a market operator that has an established reputation, a strategic position and expertise across Asia, and broader investor access.

While Australia already has two exchange-traded products providing exposure to spot crypto assets on Cboe Australia, they do not directly hold Bitcoin. The Monochrome Bitcoin ETF, if approved, would be the first of its kind in the country.

“We expect a decision from Cboe Australia about our Bitcoin ETF application before the middle of the year,” shares Jeff Yew, Monochrome Asset Management CEO.

Initially, the Monochrome Bitcoin ETF was expected to be listed with Cboe Australia’s larger rival, ASX, where larger trading volumes are available. However, the firm ultimately decided to proceed with Cboe Australia as its listing exchange.

In January 2024, Monochrome Asset Management’s head of legal and compliance, Derek Vladimir Henningsen said in an interview that they anticipated their Bitcoin ETF would be listed in the second quarter of the year.

Current regulations in Australia require firms to obtain approval from the regulator, the Australian Securities Exchange (ASX), before applying to an exchange for listing a financial product such as an ETF. Monochrome has already secured approval from ASX for its Bitcoin ETF.

Cboe Australia is one of five global listings exchanges operated by Cboe Global Markets. If approved, Monochrome’s spot Bitcoin ETF would mark a significant inroad for the Australian crypto market, providing local investors with a new avenue to gain direct exposure to BTC through a regulated investment vehicle.

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