On Friday, July 14, crypto investment firm Monochrome Asset Management announced that its partner, Vasco Trustees, updated its application with the Australian Securities Exchange [ASX] to offer a spot Bitcoin ETF. According to the official statement, the Monochrome Bitcoin ETF [IBTC] will provide investors with “direct exposure” to Bitcoin.
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The move reportedly marked the first filing for a spot Bitcoin ETF on ASX under Australia’s new crypto laws. As per the ASIC’s revised guidance, a high level of “institutional support and acceptance of the crypto asset” should exist for an investment vehicle to get green-flagged. More specifically, “reputable and experienced service providers” should be ready to support ETPs that invest in, or provide exposure to crypto assets.” Parallelly, there should exist a “mature spot market” and “regulated futures market” for trading derivatives linked to the crypto asset.
In fact, there are only two AFS license holders that have retail crypto-asset license authorization at the moment. Notably, one of them is Vasco. Other licensees cater to wholesale clients.
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Bitcoin ETF will provide investors a ‘protected environment’
Monochrome CEO Jeff Yew Yew believes that if a Bitcoin ETF launches on the ASX, it will send a “clear signal” to traditional investors that the “unregulated Wild West is coming to an end.” Through the new vehicle, investments will be backed by a “familiar,” “structured” and “protected environment,” he added. Explaining how this fund will be different from others, Yew explained,
“What sets us apart from other fund structures is that the Monochrome Bitcoin ETF is authorized under the ‘crypto-asset’ licensing category, which allows the fund to hold Bitcoin directly on the fund level.”
Furthermore, Yew expressed confidence and asserted that an optimistic outcome will be reached. Alongside the latest development, it is also worth noting that Europe is also making strides on this front. The region’s first spot Bitcoin fund is set to go live this month. As reported recently, the launch will be taking place after a 12-month delay.
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