- Monochrome is considering a spot bitcoin ETF in Australia, adding to an already crowded market in the country.
- The fund partner received one-time regulatory approval to offer direct exposure to bitcoin.
- The US continues to lag in the spot Bitcoin ETF ecosystem.
Monochrome Bitcoin Fund will launch another spot bitcoin exchange-traded fund (ETF) in Australia with a unique form of regulatory approval, according to a report from the Financial standard.
The responsible entity and custodial partner of bitcoin-focused asset manager, Vasco Trustees, received a license to operate spot crypto ETFs on Tuesday. In addition, Vasco has also received accreditation from the Australian Financial Services (AFS) through the Australian Securities and Investments Commission (ASIC), giving the fund crypto-asset authorization.
Vasco’s approval through the AFS gives investors more transparent expectations of a spot ETF by requiring segregated assets on-chain, so as not to meddle with assets on Monochrome’s balance sheet. In addition, according to AFS guidelinesprivate key storage for bitcoin must be stored “in a way that minimizes the risk of loss and unauthorized access”.
The AFS guidelines also suggest that asset managers do not use hot wallets or internet-connected wallets. Instead, the regulator says asset managers should opt to use cold storage or devices with limited internet connectivity. Additionally, the AFS license states that investors must “have access to an appropriate system of compensation” in the event of loss of private keys.
“The regulator’s approval of this license variation represents a major step forward for the advisory industry and retail investors, enabling advisors to meet their clients’ market demands for the nascent class of crypto-assets. “said Monochrome CEO Jeff Yew. , according to the Financial Standard report.
Monochrome is one of the first asset managers in the country to receive this crypto-clearance from the AFS, the company wrote in a blog post.
Meanwhile, the US continues to lag behind in the ETF ecosystem. Not only have regulators not approved spot Bitcoin ETFs, but some asset managers are outright resorting to dispute against the United States Securities and Exchange Commission (SEC) for progress.