Monochrome Asset Management, an Australian-based cryptocurrency investment firm, recently updated its application, targeting the introduction of a spot Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX).
Monochrome is working in partnership with Vasco Trustees on this endeavor. The proposed ETF, dubbed the Monochrome Bitcoin ETF, aims to provide Australian retail investors with direct exposure to Bitcoin and Ether (ETH), according to a company announcement on July 14.
Monochrome's CEO, Jeff Yew explain the firm's intents, emphasizing that the need for Australian retail investors to be able to access Bitcoin within a regulated environment, promoting greater freedom to engage with the asset class within an established regulatory framework.
Yew pointed out the security advantages of a regulated ETF over unregulated exchanges. With a regulated ETF, investor protection is assured, while unregulated exchanges may lack such safeguards. This added protection will likely inspire confidence and increase participation in the crypto market among retail investors.
Impact and Future Expectations
Partnering with Vasco, Monochrome is well-positioned to offer regulated exposure to cryptocurrencies for retail investors. Vasco, functioning as Monochrome's "Responsible Entity Partner," holds the required authorization under an Australian Financial Services Licence to do so.
Yew further noted that a Bitcoin ETF on the ASX could significantly change the perception of traditional investors, marking an end to the unregulated "Wild West" phase. The structured, familiar, and secure environment provided by an ETF could boost investor confidence in the crypto market.
The proposal of a Bitcoin ETF on the ASX indicates significant progress towards mainstream adoption and regulatory acceptance of cryptocurrencies in Australia. This updated application aligns with the recent global trend of increasing interest in spot Bitcoin ETFs, evidenced by filings from financial behemoths like Fidelity, Invesco, Wisdom Tree, Valkyrie, and BlackRock.
The introduction of the Monochrome Bitcoin ETF would provide investors with "direct exposure" to Bitcoin, according to the company's official statement. This represents a notable milestone as the first filing for a spot Bitcoin ETF on the ASX under the country's new crypto regulations.
As such, on the outset, forthcoming decisions regarding Monochrome's Bitcoin ETF application could set an important precedent for future crypto asset investment vehicles.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
