Your trusted guide to investing in Bitcoin

Explore the world of Bitcoin investment with Monochrome and Finder, then discover how you can start buying Bitcoin with Monochrome.

Get started!

This guide to Bitcoin investing is brought to you by Monochrome and Finder.

For more information on how to invest in Bitcoin and ETFs, visit Monochrome's website today.

Monochrome Asset Management is the Investment Manager of the Monochrome Bitcoin Trust (IBTC). This is a regulated crypto asset fund for experienced Australian retail and wholesale investors seeking a regulated and familiar investment vehicle that tracks the price of Bitcoin.

Bitcoin itself is not a regulated financial product, but a Bitcoin Trust is a regulated product and as such is subject to a variety of legislation with the aim of ensuring the controlling entities act in the best interest of investors.

Monochrome provides investors indirect ownership of Bitcoin through a bare trust structure.

Unlike investing in Bitcoin in unregulated markets, the trust is a financial product that's subject to regulatory oversight and provides a number of consumer protections not available when buying Bitcoin outright.

The Monochrome Bitcoin Trust may be suitable for a range of investors that possess a very high-risk appetite as well as other attributes used to describe consumers within the fund's target market determination.

• Individual investors
• Companies
• Trustees including for self-managed superannuation funds and companies*
• Other eligible entities such as partnerships and associations.

However, it's important to note that as with every form of investment, there are risks associated. As explained in the Product Disclosure Statement, the fund should be considered very high risk. Cryptocurrency represents a volatile form of investment and requires a high risk tolerance from investors.

Speaking with a financial adviser prior to investing in Bitcoin is highly recommended.

Learn more about Monochrome and Bitcoin

Key Benefits

InsuredIBTC's crypto-custodian maintains an insurance policy and the fund is overseen by licensed entities aligned with ASIC's RG133 custodian requirements.

CustodyMonochrome provides best-in-class security via Gemini Trust.

BenchmarkingWith robust benchmarking in AUD, you can be sure about transparency in the pricing of Bitcoin. Regulated benchmarking means there are no hidden fees or costs and the pricing of the fund is resistant from manipulation.

AFSLMonochrome is a Corporate Authorised Representative (CAR number 1286428) of Vasco Trustees Limited (Australian Financial Services Licence number 344486).

Monochrome Bitcoin Trust (IBTC)

The Monochrome Bitcoin Trust enables investors to purchase Bitcoin, with the underlying assets owned by the trust. This provides investors the ability to engage with crypto without needing to utilise crypto exchanges, crypto wallets or elaborate electronic security measures.

However, it's important to note that investors are still exposed to inherent risks surrounding crypto, such as price volatility. The losses caused by these types of risks are not covered by insurance. The Product Disclosure Statement provides a detailed outline of the risks involved.

Before registering your interest, make sure that you also read the Target Market Determination. This will help provide an overview of whether the Monochrome Bitcoin Trust suits your particular investment goals and risk profile. The Reference Guide also provides a more detailed breakdown of specific product features.

Register your interest today

Education and FAQs

• What is an ETF?

  ETF is an abbreviation for "Exchange-traded Fund". In practical terms, they function much like mutual funds; they're focused on a particular industry, commodity or security. This can cover a huge range of different securities, including everything from gold to cryptocurrencies.

  However, you're able to buy and sell them on the stock market in a similar fashion to "regular" stocks or securities.

  From an investor perspective, they offer the advantage of allowing access to a range of different investments, without actually requiring you to purchase all of those different investments directly.

  They don't offer the same liquidity as other types of stocks, but they can be an effective way to diversify your portfolio. This can be particularly helpful for new investors, or simply those looking to branch out while minimising financial exposure.

• How does a Bitcoin ETF work?

  Bitcoin ETFs function similarly to other ETFs. You can buy and sell them on the stock market and use them to diversify your portfolio.

  However, they do not provide income distribution.

  Returns are tied to the price of Bitcoin, rather than another type of security. The value is tracked by a variety of factors, including direct holdings or futures contracts.

  One of the main features they offer to investors is that you are able to invest in cryptocurrencies without having to engage with the usual systems involved in owning crypto. Wallets and crypto exchange accounts aren't required in order to buy into a Bitcoin ETF.

  So you're able to gain some of the benefits of investing in Bitcoin without the same level of complexity that can ordinarily be involved.

  However, it's important to note that there is still significant risk involved in investing with a Bitcoin ETF.

  Cryptocurrencies can be highly volatile, and the price formation of digital assets in general is not always transparent.

  Third parties involved (such as exchanges and wallet providers) are also not necessarily regulated, adding an additional element of risk.

  Due to their speculative nature, Bitcoin ETFs are primarily geared towards investors with a high tolerance for risk. Bitcoin ETFs are also primarily designed with long-term investors in mind, rather than being suitable for short-term or mid-term investors.

• Are there any Australian Bitcoin ETF applications in place?

  The Monochrome Australian Bitcoin ETF is in its application process with the ASX and is pending a decision. You're able to register your interest online with Monochrome at the moment.

• SMSF Risk Warning

  * SMSF are complex financial products with strict legislation governing their use and the forms of investment allowed. There can also be significant tax implications depending on the types of yields from a given investment.

  Before setting up a SMSF, we suggest speaking with a financial adviser. Additionally, we would also recommend consulting with a financial adviser prior to incorporating cryptocurrencies into your SMSF portfolio. We also suggest visiting the ATO website for more information about crypto investment in SMSF, including Bitcoin.

Written by

Tom Goodwin

Editor

Tom Goodwin is the commercial content editor for Finder. With more than a decade of experience in the field, he's worked for a variety of high-profile publications and clients, including Reader's Digest, MPA, Insurance Business and HRD Magazine. See full bio

Tom's expertise

Tom has written 245 Finder guides across topics including:

• Commercial content