According to the Financial Standard, Monochrome Bitcoin Fund is planning to launch a spot Bitcoin ETF in Australia with a special regulatory license.
The Australian Financial Services (AFS), through the Australian Securities and Investments Commission (ASIC), granted the appropriate license and further accreditation to the fund’s custodial partner, Vasco Trustees, allowing the fund to run spot crypto-based ETFs.
Vasco’s additional authorization through the AFS provides investors with greater transparency of expectations by ensuring that on-chain assets are segregated from other assets on Monochromes’ balance sheet. According to AFS regulations, Bitcoin private keys must be stored in a way that reduces the possibility of theft and illegal access.
According to AFS guidelines, asset managers should use cold wallets since hot wallets have restricted internet connectivity. AFS also ensures that investors get the right amount of money if they lose their private keys.
With the regulator’s approval, Monochrome becomes one of the country’s first asset managers to obtain AFS authorization, marking a significant milestone for investors.
According to the Financial Standard report, Jeff Yew, the CEO of Monochrome, stated: “The regulator’s approval of this license variation represents a major step forward for both the advice industry and retail investors, allowing advisers to meet the market demands of their clients when it comes to the nascent crypto-asset class.”
While all this is happening, the US has yet to approve a spot Bitcoin ETF, and some asset managers are suing the SEC to ensure progress in the ecosystem.
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