In the wake of new crypto regulations in Australia, investment management firms Monochrome Asset Management Pty Ltd, and Vasco Trustees Ltd have led the charge, refiling their spot Bitcoin ETF application. This move marks the initiation of Australia’s entry into the world of spot Bitcoin ETFs, a sector that has seen growing global interest.
The Bitcoin ETF, known as the Monochrome Bitcoin ETF (IBTC), is the first of its kind under the recently implemented regulatory framework. The refiled application aims to offer direct Bitcoin exposure, an exciting development for investors within the country.
Unveiling The First Bitcoin Spot ETF
The formal announcement of the refiled application was made on July 14. This comes after the Australian Securities and Investments Commission (ASIC) laid the foundation for a local market framework for crypto-asset exchange-traded products.
IBTC stands as the first such product in Australia, promising a way for retail investors to gain direct and regulated exposure to Bitcoin. Monochrome’s partner Vasco, licensed by the Australian Financial Services, offers the assurance of regulatory oversight in dealing with crypto-assets. They have announced two managed ETF investment products: the Monochrome Bitcoin ETF and the Monochrome Ethereum ETF.
Monochrome’s CEO, Jeff Yew, publicly acknowledged Australia’s entry into the Bitcoin ETF competition. He expressed his views on Twitter, highlighting how a Bitcoin ETF could empower investors to access and utilize the asset class in a regulated manner.
Yew emphasized the importance of regulatory frameworks, noting that they could help investors navigate the crypto-assets realm with confidence. His statements echo the global sentiment about the growing role of cryptocurrencies and the need for sound regulatory mechanisms.
Industry Support For Monochrome And Vasco
Backed by industry giants like State Street Australia, Automic Pty Limited, Ernst & Young, CF Benchmarks, and Gemini Trust Company, the venture from Monochrome and Vasco is expected to make waves.
ASIC’s newly adopted framework has provided pathways and regulatory requirements for market participants, ensuring Australian investors’ confidence while considering investments in emerging asset classes. It’s a step towards integrating digital assets into conventional finance systems, potentially paving the way for other nations to follow suit.
The actions of Monochrome and Vasco also underline the shifting landscape of global finance, where traditional and digital assets increasingly intersect. As Australia takes its first steps into this new frontier, the world watches in anticipation of the effects these changes will have on the broader crypto and traditional markets.
Meanwhile, over the past 24 hours, Bitcoin has carried the rest of the crypto market along with its recent rally. The largest crypto by market capitalization has surged nearly 3% and currently trades at a price of $31,167, at the time of writing with a market cap above $600 billion.
Featured image from iStock, Chart from TradingView