Australia is poised to enter the realm of Bitcoin exchange-traded funds (ETFs) alongside other global players like Hong Kong, Canada, and the United States with the launch of its first spot Bitcoin ETF.

The Monochrome Bitcoin ETF (IBTC), the country's maiden ETF directly holding Bitcoin, is scheduled to commence trading on the Cboe Australia exchange on Tuesday, June 4, marking a significant milestone in Australia's cryptocurrency investment landscape.

While Australia already offers various exchange-traded products providing exposure to Bitcoin, Monochrome Asset Management has secured approval under a new crypto asset licensing category established under Australian Financial Services (AFS) licensing regulations in 2021. This designation enables the ETF to hold Bitcoin directly, distinguishing it from its predecessors.

IBTC's holdings will be securely stored offline, ensuring robust investor protection measures in compliance with Australian institutional custody regulatory standards. Unlike US-based cash-settled ETFs, IBTC permits in-kind redemption from investors, enhancing flexibility and liquidity in the market.

Monochrome CEO Jeff Yew expressed confidence in IBTC's appeal to investors, citing the growing demand for indirect Bitcoin ETF products in recent months. Yew also revealed plans for launching an Ether (ETH) ETF, further expanding investment opportunities within the digital asset sector to meet evolving investor needs.

The debut of IBTC in Australia follows closely on the heels of the launch of four spot Bitcoin ETFs in Hong Kong in April. While the Hong Kong ETFs have experienced mixed performance in terms of net inflows, Yew remains optimistic about the prospects of Australian spot Bitcoin ETFs, forecasting significant net inflows of $3 billion to $4 billion within the first three years.

As the cryptocurrency landscape continues to evolve globally, Australia's foray into spot Bitcoin ETFs underscores the increasing mainstream acceptance and adoption of digital assets as legitimate investment vehicles.