Asset Manager Monochrome Approved to Offer Crypto-Based ETFs in Australia

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Crypto Regulation
Asset Manager Monochrome Approved to Offer Crypto-Based ETFs in Australia

Australian-based asset manager Monochrome has been approved to offer spot-based crypto assets. The firm, which is a partner of Vasco Trustees, has been approved by the Australian Securities and Investments Commission (ASIC) to provide exchange-traded funds (ETFs) for virtual currencies like Ethereum and Bitcoin. 

Monochrome has received an Australian Financial Service License (AFSL) to operate an ETF dubbed Monochrome Bitcoin ETF. The organization is now one of the new asset managers in Australia to receive legality of the crypto ETF running. They aim to provide investors with necessary tracking services based on their sales or purchases on digital asset prices.  

The firm is permitted to provide retail investors with complete control and direct experience with different cryptocurrencies such as Solana. An ETF is preferable for crypto newbies as they are offered low expense ratios. Most of the time, ratios for trading and monitoring crypto assets are high; therefore, it’s convenient. Abundant liquidity is also a handy good that comes with an ETF, diversification, and low investment threshold

The Significance of Bitcoin ETFs to Australian Community

The organization considers Bitcoin ETF since it provides regulated onramp capital flow for institutional and retail investors. Moreover, exchange-traded funds would succumb to several technical and legislative hurdles facing current retail and institutional investors.  

According to Monochrome, the approval has enhanced controlled investment options for retail investors and authorized financial advisors. Monochrome’s chief executive, Jeff Yew, commented that the regulator’s approval of the license variation indicates a massive step for the advice industry and retail investors. Advisors will now be able to meet the market demands of their clients when it comes to the nascent crypto-asset class. 

Furthermore, he said that providing the regulated and more secure rails signifies that investors have a great degree of regulation concerning this type of exposure. Of course, both the industry and the investors will emerge as the crowned victors

Monochrome’s ETF Journey

Earlier this year, Monochrome announced the launch of a series concerning various chapters on the development of bitcoin’s market. This comes before bitcoin’s drop way below its most significant highs of $69,000. Despite federal reserves, hedge funds, and organizations to minimize the loss, Bitcoin fell below the $20,000 mark for the first time since 2017. 

Monochrome reviewed the first part of the series on the journey carried out in the US markets to introduce a bitcoin ETF. The review emanated after the market breakthrough on October 19th, 2021, when Proshares Bitcoin Strategy ETF(BITO) secured approval from the Security and exchange commission (SEC). The approval enabled the crypto organization to enter NASDAQ trading, attracting more than $1.1 billion in trading volume in the first two days. BITO, therefore, was the second most significant launch in ETF history. 

The organization stated that the review was aimed to aid the launch as the first bitcoin ETF in the state. Additionally, it was estimated to help develop more recognition for the currency as a possible firm investment asset.

A recent survey done in Australia shows that Australians are generally optimistic about the vast cryptocurrency development. The numbers of advisors giving out apportion of clients’ portfolios to digital assets has massively developed.

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.