Monochrome Bitcoin Fund is scheduled to launch a spot Bitcoin ETF in Australia with unique regulatory approval according to the Financial Standard.
The fund's custodial partner, Vasco Trustees, received the required license and additional accreditation from the Australian Financial Services (AFS) through the Australian Securities and Investments Commission (ASIC), granting the fund authorization to operate spot crypto-based ETFs.
Vasco’s additional authorization through the AFS provides investors greater transparency of expectations by requiring on-chain assets to be separated from other assets on Monochromes' balance sheet. AFS guidelines mandate that private key storage for Bitcoin is done so in a way that minimizes the risk of loss and unauthorized access.
AFS guidelines advocate asset managers use cold wallets, rather than hot wallets, as cold wallets have limited connectivity to the internet. Additionally, in the event that there is a loss of private keys, AFS mandates that investors should have appropriate compensation.
The regulator’s approval of the license marks Monochrome as one of the first asset managers in the country to receive authorization from the AFS and is thought to be a massive step in the right direction for investors.
"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,” said Monochrome’s CEO, Jeff Yew, per the Financial Standard report.
Meanwhile, the U.S. has yet to approve a spot Bitcoin ETF, with some asset managers resorting to litigation against the SEC to gain progress in the ecosystem.