iTunes on new iMac

Presently, on a Windows PC, I have over 500GB iTunes library (all purchased from iTunes store) stored locally.

I really don't want to store all that content on my new iMac (disk space is precious on Macs).

Making an assumption here, and looking for confirmation:

Will I be able to watch/listen to all purchased library content from the Cloud opposed to DLing it to local drive(s)?