Monochrome Asset Management and Vasco Refile First Spot Bitcoin ETF Application Under Australia’s New Crypto Regulations

Monochrome Asset Management and Vasco Refile First Spot Bitcoin ETF Application Under Australia’s New Crypto Regulations

Monochrome Asset Management Pty Ltd, a cryptocurrency-focused investment management firm, and its partner Vasco Trustees Ltd have resubmitted an updated application for a spot Bitcoin exchange-traded fund (ETF) with the Australian Securities Exchange (ASX). This move comes following the introduction of Australia’s new regulatory framework for cryptocurrencies.

The Monochrome Bitcoin ETF, known as IBTC, will be the first spot Bitcoin ETF under the country’s revamped regulations and will offer investors direct exposure to Bitcoin. Monochrome Asset Management made an official announcement on July 14, stating that Vasco Trustees had submitted the revised application to the ASX.

Vasco, the responsible entity partner of Monochrome, holds an Australian Financial Services License that allows it to offer retail investors regulated access to crypto-assets like Bitcoin (BTC) and Ethereum (ETH). Alongside the Monochrome Bitcoin ETF, the Monochrome Ethereum ETF is another managed ETF investment product offered by the company.

Describing it as an Australian first, Monochrome CEO Jeff Yew highlighted that the IBTC ETF provides a regulated structure for retail investors to own Bitcoin and gives them an absolute entitlement to the underlying asset. Yew expressed his enthusiasm on Twitter, noting that Australia has joined the race for spot Bitcoin ETFs. He emphasized the benefits of a Bitcoin ETF, stating that it enables investors to buy and utilize the asset class within regulatory boundaries and with a range of investment choices.

The application by Monochrome and Vasco has garnered support from reputable service providers such as State Street Australia, Automic Pty Limited, Ernst & Young, CF Benchmarks, and Gemini Trust Company, further solidifying their venture.

The Australian Securities and Investments Commission (ASIC) has implemented a new market framework for crypto-asset exchange-traded products, creating clear pathways and regulatory requirements for market participants who offer financial products with direct exposure to cryptocurrencies. These developments aim to enhance the confidence of Australian investors considering investments in this emerging asset class.

The submission by Monochrome and Vasco follows a trend set by other major investment firms. BlackRock, Fidelity Investments, Invesco, and WisdomTree are among those that recently filed spot Bitcoin ETF applications with the U.S. Securities and Exchange Commission (SEC). These applications have reignited institutional investors’ interest in crypto asset funds, resulting in a net inflow of $500 million over the past three weeks.

Furthermore, the SEC has acknowledged the spot Bitcoin ETF application filed by Bitwise, indicating a growing acceptance and recognition of such investment vehicles.