TOL - 18th Oct, 2024
Australia's first direct spot Bitcoin ETF has launched. Here's where you will find it
After more than a decade of usage and years of building an investment case, the first direct spot Bitcoin ETF has arrived in Australia.
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Note: This Fund in Focus was taped on Wednesday 9 October 2024. The Monochrome Bitcoin ETF is now live on the CBOE exchange while its Ethereum equivalent is listing shortly, pending any last regulatory approvals.
Despite all its sceptics and haters, cryptocurrency has entered the mainstream conversation in a way that not many asset classes have been able to do. Since the Bitcoin network was founded in January 2009, a flood of cryptocurrencies have been created and launched - with varying degrees of uptake and success. But the original is - much like Elton John and his song - still standing!
The biggest challenge for Bitcoin investors in particular over the last few years has been garnering institutional interest and addressing regulatory concerns. This ongoing dialogue has been particularly visible in the context of launching cryptocurrency-linked ETFs.
After more than 15 years, Australia finally has a pure play exposure option for tracking the asset value change of Bitcoin itself, thanks to the Monochrome Bitcoin ETF (CBOE: IBTC), which launched on-market recently.
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Monochrome COO Bridget Nichols says they're not stopping there. An equivalent Australian-first Ethereum product will launch in the coming weeks.
To explain it all to us and to answer the inevitable questions that investors still have about this asset class, Nichols joined us for our Fund in Focus series.
Timestamps
- 0:00 - Intro
- 0:41 - Tell us about Monochrome and the role you play in the cryptocurrency market.
- 1:53 - What was the thesis for launching this product?
- 3:33 - What makes the Monochrome product special?
- 5:03 - What is the investment case for Bitcoin?
- 6:09 - How would this ETF answer crypto's sceptics?
- 7:14 - How is a direct spot Bitcoin ETF different from other cryptocurrency ETPs?
- 8:08 - What are the key risks investors should consider?
- 9:38 - How can investors access this product?
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Monochrome Bitcoin ETF (IBTC)
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This is an archived profile. Hans was a senior editor at Livewire Markets from April 2022 to February 2025.
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This is an archived profile. Hans was a senior editor at Livewire Markets from April 2022 to February 2025.
Expertise
This is an archived profile. Hans was a senior editor at Livewire Markets from April 2022 to February 2025.
Expertise
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Thank you for having Monochrome on Funds in Focus, Hans!
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Carl Bowden
I'm reminded of Marcus Padley's assessment of crypto currency on this very website some months ago...."crypto is crapto". It's just gambling - you can't buy your groceries (or anything else legal) with Bitcoin and the only potential return you get is if someone buys it from you for more than you paid. I guess if you want to have a punt on something other than the horses or football in the speculative portion of your portfolio then knock yourself out, but an as "investment".... forget it. I can't imagine why any crypto would be a part of any serious portfolio.
Replying to
Carl Bowden
Have a look at the research being published globally about impact of a 5 percent allocation on traditional portfolios over a ten year horizon Carl. You may change your mind!
Replying to
Ian Radbone
Exactly Ian! I would really encourage anyone who is grappling with the investment case for BTC to view the studies recently published by some of the worlds biggest Asset Managers on this. The data doesn't lie!
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Lucy Whittle
Enjoyed this interview with a very smart lady. Will be watching Monochrome and their journey.
Replying to
Lucy Whittle
Thank you for watching Lucy, and please do keep an eye on Monochrome if you have an interest in the asset class.
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michael magill
Hello Bridget, Just wondering how you selected Gemini Trust co as the BTC custodians. I am guessing the greatest concern is them getting hacked or something and losing the Bitcoin. That what worries me about moving from self custody.
Hi Michael, that is a great question. We did extensive due diligence on a number of digital asset custodians as part of brining our ETFs to market. Ultimately we felt that Gemini had the best offering for our ETF across a number of metrics. We have also recently appointed Bitgo as a second custodian on both our ETFs after extensive due diligence. We are the first investment manager in Australia to have redundant custodians on our ETFs, adding an additional layer of robustness. If you would like more information on Gemini or Bitgo, please reach out to us via our website, and we can schedule a discussion and take you through it in more detail.