Australia’s Monochrome Asset Management’s Bitcoin ETF will begin trading today, June 4, under the ticker IBTC. The management fee has been set at 0.98%.
This launch is a significant milestone for the local market, providing traders and investors with a safer and more regulated way to access Bitcoin.
Meanwhile, the fund is expected to benefit from the immense interest generated by the US SEC’s approval of 11 spot Bitcoin ETFs earlier this year, which garnered substantial inflows from both retail and institutional investors.
Bitcoin price could increase long-term
The price of Bitcoin is not directly affected by spot Bitcoin ETFs, but the higher purchasing and overall demand of the flagship crypto by ETFs can boost the price in the long term. The Bitcoin price is already near its all-time high.
In the short term, the trajectory might not be entirely positive. After the approval in the US, there was a “sell the news” moment, and many people sold their holdings, leading the price to decline.
However, financial advisors and retirement plans are increasingly using Bitcoin ETFs to diversify their clients’ portfolios, which could see demand for Bitcoin increase long-term.
Growing marketplace liquidity, easier access, and increased adoption will all have a positive impact on Bitcoin’s price. Considering the supply of BTC is capped at 21 million, prices should rise over time, as long as demand is adequate.
ETFs sell and buy large volumes of Bitcoin based on demand, which could help stabilize prices and increase liquidity over the long term.
Downsides of ETFs
Regulators closely monitor all activities involving spot Bitcoin ETFs, and any regulatory actions taken against them could hurt the price of Bitcoin.
In other news, major US cryptocurrency exchange Coinbase is set to introduce services designed for Australia’s Self-Managed Superannuation Funds, targeting the country’s significant pension market.
This market, valued at $600 billion, is experiencing growing interest in Bitcoin investments. Coinbase’s initiative is geared towards offering Australian retirees a secure and uncomplicated method to incorporate cryptocurrency into their retirement portfolios.
