Aussie asset manager to offer crypto ETF using unique license variation

Australian asset manager Monochrome Asset Management has landed the nation’s first Australian monetary companies license (AFSL) for a spot crypto exchange-traded fund (ETF). 

Speaking to Cointelegraph, Jeff Yew, CEO of Monochrome Asset Management, stated the AFSL approval is important, as till this level, accredited crypto ETFs in Australia solely function below common monetary asset authorization and solely not directly maintain crypto-assets.

Yew famous that Monochrome’s crypto ETFs, however, will instantly maintain the underlying crypto-assets and is particularly licensed by the Australian Securities & Investments Commission (ASIC) to accomplish that.

The Monochrome government stated the approval represents a big step ahead for each the recommendation trade and retail traders:

“We see choice being a good thing for investors, particularly when dealing in the regulated space, as not all offerings are equal.”

”Investors investing in Monochrome’s ETFs will know that their funds are investing instantly in Bitcoin (BTC) and Ethereu (ETH), and importantly inside the regulatory rails established by ASIC particularly for crypto-assets,” he stated.

At this stage, there isn’t any agency date when the Monochrome Bitcoin ETF (IBTC) shall be made obtainable, however it’s anticipated in September 2022, as soon as the PDS and TMD have been issued and topic to regulatory approvals.

When the ETFs are made obtainable, Yew says “Monochrome will focus on BTC and ETH because they are the only two crypto-assets currently identified by ASIC as being suitable for retail ETF exposure.”

“Over time, and as the market matures, we will take an open-minded approach to make new products available.”

A primary for a crypto ETF

Operating below an Australian Financial Services Licence (AFSL) with a direct crypto-asset authorization ensures that the fund and the issuer are topic to sturdy oversight from ASIC, stated Yew. 

AFSL authorization opens new regulated funding alternatives for direct retail traders and thru licensed monetary advisers.

Approval of the Australian Financial Services Licence variation implies that ASIC has thought of and confirmed that the licensee has the related expertise in crypto-assets to function ETFs that instantly maintain Bitcoin and Ethereum.

This provides traders better protections constructed round ASIC’s Report 705 reminiscent of appropriate benchmarking towards the spot worth and Australian-compliant custody options.

Cointelegraph beforehand reported a warning from Australia’s monetary regulator about using unregistered cryptocurrency companies.

Road to approval

Monochrome Asset Management was launched in early 2021 by former Binance Australia CEO Jeff Yew to push for institutional adoption of crypto property in Australia.

Related: Digital asset manager Monochrome valued at $15M following Series A

Their ETF plan has been within the works since February 2022.

Generally, the method for a monetary companies licence variation usually takes six to twelve months, which was the timeline on this case.


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