The approval of the license is a monumental event not only for Monochrome Asset Management’s CEO, but also for retail investors.
Monochrome Asset Management, an Australian asset manager, is the first in the country to receive an Australian financial services license (AFSL) for a spot crypto exchange-traded fund (ETF).
Yew noted that Monochrome’s crypto ETFs will, unlike the others, hold the actual cryptocurrency assets and are permitted bythe Australian Securities & Investments Commission (ASIC) to do so.
The Monochrome executive claims that the approval signifies a massive step forward for both retail investors and the advice industry.
There is no set date for when the Monochrome Bitcoin ETF (IBTC) will be available, but according to BITCOIN, it should arrive in September 2022, following the completion of the PDS and TMD and the receipt of regulatory clearances.
Yew said that an Australian Financial Services License (AFSL) with a direct crypto-asset authorization secures the fund and the issuer from robust regulation by ASIC.
The Australian Stock Exchange (ASX), the Australian Financial Services Licensing Authority (AFSL) and the National Australia Bank (NAB) offer new authorized investing possibilities to direct retail investors.
ASIC’s approval of the licensee’s variation to their Australian Financial Services Licence suggests that they have determined that the licensee has experience with crypto-assets, allowing them to operate ETFs that invest in Bitcoin and Ethereum.
This framework also protects investors from the dangers of the Report 705, such as benchmarking to the spot price and secure custody options that are Australian-compliant.
Monochrome Asset Management was launched in early 2021 by former Binance Australia CEO Jeff Yew to push for institutional adoption of crypto assets in Australia.
Since February 2022, the firm’s ETF plan has been in the works. The process for a financial services licence variation generally takes six to twelve months, as it did in this case.
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