Monochrome, an Australian asset management firm focused on Bitcoin, partners with Vasco Trustees for an ASX application. The application seeks approval for the Monochrome Bitcoin ETF (IBTC). The Monochrome Bitcoin ETF (IBTC) is the first spot Bitcoin ETF filing on ASX under the crypto provisions licensing. The ETF aims to provide regulated exposure to Bitcoin for retail investors.
The action comes after Vasco, a partner of Monochrome, obtained a financial license to run crypto spot ETFs in Australia. In October 2021, ASIC revised its regulations to enhance investor protection and market transparency in the cryptocurrency sector. The updates aimed to improve the framework for Australian financial services licenses.
To comply with the new requirements, credible and knowledgeable service providers must back a spot ETF, along with institutional support and acceptance of the underlying crypto asset. Now only two Australian financial services licensees are permitted to offer retail crypto assets, while the rest are categorized as wholesale.
Jeff Yew, CEO of Monochrome, expressed optimism about the application’s success. Yew discussed the failure of earlier spot Bitcoin ETF initiatives in Australia, attributing it to bad market timing. He also mentioned misunderstandings over licensing and operational problems. Yew pointed out that the current environment is different due to the product structure and licensing, nevertheless.
The application for Australia’s first approved spot Bitcoin ETF is a significant advancement. It aims to offer ordinary investors regulated exposure to Bitcoin within a transparent and compliant environment.