- The Australian Bitcoin centered asset management firm Monochrome makes a bold step.
- It is taking another shot at running a licensed spot ETF during the US finlings wave.
- The new regulations should bode well for the entity.
Australian asset management firm Monochrome has filed an application for Australia’s first fully-licensed spot Bitcoin ETF. This is a significant move as the entity is choosing to do so under new regulatory guidelines. The Monochrome Bitcoin ETF (IBTC) aims to provide regulated exposure to Bitcoin for retail investors.
This marks the first filing for a spot Bitcoin ETF on the Australian Securities Exchange (ASX). At least, it is the first since the introduction of crypto provisions in the licensing regime two years ago. Monochrome’s partner, Vasco Trustees, received a financial license to operate crypto spot ETFs in Australia last year.
The Australian Securities and Investments Commission (ASIC) revised its rules for the Australian Financial Services (AFS) license in October 2021. It did so to enhance market transparency and investor protections for crypto firms.
The new rules require institutional support and acceptance of the underlying crypto for a spot ETF to be approved. Although it would also have to come along with reputable and experienced service providers.
Currently, there are only two AFS licensees authorized to offer retail crypto-asset products, including Monochrome’s ETF. Other attempts at Bitcoin ETFs in Australia, such as Cosmos Asset Management’s fund of funds, were not successful. However, this was likely due to Cosmos delisting its offering in November 2022 due to lack of interest.
In addition to Australia, there is renewed interest in spot Bitcoin ETFs in the United States. For instance, major institutions like BlackRock, Invesco, and WisdomTree are filing applications in recent months. These developments reflect the growing demand for regulated investment products that provide exposure to Bitcoin and other cryptocurrencies.
These institutional moves have come as a significant time. Considering XRP’s sensational win against the SEC, more institutes will likely begin to adopt crypto services and products. We are likely entering a new age of financial freedom.
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