Monochrome First to Utilise APAC Timezone Benchmarking for Spot Bitcoin ETF


Monochrome First to Utilise APAC Timezone Benchmarking for Spot Bitcoin ETF_CF Benchmarks-1600x900.png

BRISBANE, 1 March, 2024 – In a strategic move, the Monochrome Bitcoin ETF (IBTC) will be the first to use the CME CF Bitcoin Reference Rate – Asia Pacific Variant (BRRAP) for its benchmarking. The BRRAP provides a reliable pricing benchmark for bitcoin, designed to accurately reflect the market price, resist manipulation, and be verifiable by market participants.

Benchmarks serve as essential reference points for index funds, providing a reliable pricing source. For Bitcoin-based products, the stability of these benchmarks is crucial due to Bitcoin's volatility. The CME CF Bitcoin Reference Rate employs a calculation method designed for transparency and resistance to manipulation. It averages prices from six sources over an hour, divided into 12 segments. This method allows for independent verification.

Transitioning from the CME CF Bitcoin Reference Rate (BRR) to the BRRAP as the pricing benchmark for IBTC, being potentially the first regulated spot Bitcoin ETF in the Asia-Pacific region to hold bitcoin directly, positions it as a foundational instrument for feeder Bitcoin ETFs in compatible time zones.

Monochrome also aims to address regional market specifics, drawing on the experience of the U.S. ETFs. This shift is intended to enhance operational efficiency, reduce timezone-related risks, and improve execution.

CF Benchmarks, regulated by the UK Financial Conduct Authority (FCA), ensures the BRRAP meets high industry standards, guarding against manipulation and continuously monitors input data. The BRRAP is designed to align with APAC market closing times, making it suitable for regulated financial products like the IBTC and responsive to the region’s market dynamics.

About CF Benchmarks

CF Benchmarks is the leading provider of cryptocurrency benchmark indices, authorised and regulated by the UK FCA under the UK BMR. Its benchmark indices are provided through public methodologies and transparent governance, for tracking, valuing and settling risk in cryptocurrency financial services and products. CF Benchmarks' indices are used to settle regulated cryptocurrency derivative contracts listed for trading by CME Group and to calculate NAV for exchange listed investment products in Europe, Canada and Brazil. Since January 2024, CF Benchmarks' CME CF Bitcoin Reference Rate - New York Variant is used to calculate NAV for the spot Bitcoin ETFs listed on NYSE, Nasdaq and CBOE in the US.

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About Monochrome Asset Management

Monochrome Asset Management is the investment manager of the Monochrome Bitcoin Trust (IBTC). The firm is authorised under an Australian financial services licence specifically authorised for investing in crypto-asset investments.

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Subject to regulatory approvals, the Monochrome Bitcoin ETF will be a registered managed investment scheme. The Monochrome Bitcoin ETF is proposed for launch in Q2, 2024. Monochrome Asset Management Pty Ltd ABN 80 647 701 246 will be the Investment Manager for the Monochrome Bitcoin ETF and is a Corporate Authorised Representative of Vasco Trustees Ltd ABN 71 138 715 009 | AFSL 344486. Vasco Trustees Limited will be the Responsible Entity for the Monochrome Bitcoin ETF and the issuer of its Product Disclosure Statement (PDS) and Target Market Determination (TMD). Interests in the Monochrome Bitcoin ETF are not currently available for subscription and the PDS and TMD will be made available at prior to the commencement of trading. Investors should consider the PDS and TMD in deciding whether to invest in the Monochrome Bitcoin ETF. This information is general in nature and is not financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision investors should read the PDS and TMD, and with the assistance of a financial adviser, consider if the investment is appropriate for their circumstances.

The content, presentations and discussion topics covered in this material are intended for licensed financial advisers and institutional clients only and are not intended for use by retail clients. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented. Except for any liability which cannot be excluded, Monochrome, its directors, officers, employees and agents disclaim all liability for any error or inaccuracy in this material or any loss or damage suffered by any person as a consequence of relying upon it. Monochrome advises that the views expressed in this material are not necessarily those of Monochrome or of any organisation Monochrome is associated with. Monochrome does not purport to provide legal or other expert advice in this material and if any such advice is required, you should obtain the services of a suitably qualified professional.

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