Monochrome Asset Management Firm Revises Bitcoin ETF Application

Australian-based crypto firm, Monochrome Asset Management, has revised its application to provide a spot for Bitcoin ETF on the Australian Securities Exchange. The firm plans to do this through its partner Vasco Trustees.

The company's CEO says investors must seek access to Bitcoin in a simpler, structured, and secured regulatory system.It's worth noting that spot Bitcoin ETF filings have been the main attention of folks in recent weeks.

Monochrome Exchange Revises Spot Bitcoin ETF Application in Austria

The asset management giant is currently making another attempt to obtain a licensed spot Bitcoin exchange-traded fund (ETF), thus joining several other US applications.

As announced on July 14, the proposed Monochrome Bitcoin ETF (IBTC) would offer retail Australian traders and investors direct access to Bitcoin (BTC) and Ethereum (ETH), the two largest coins globally.

This development indicated the first application for a spot Bitcoin ETF on the ASX since a licensing regime with virtual assets was enacted almost two years ago.

Also, this move comes a year after Monochrome's partner, Vasco, received a financial license to offer crypto spot ETF services in Australia.Exchange-traded funds (ETFs) expose traders and investors to numerous virtual assets without necessarily owning them directly.

These assets include currencies, commodities, stocks, or bonds. Concerning a Bitcoin, traders can partake in the price action movement of the coin without directly owning any portion of the crypto itself. But rather, they can buy shares that mirror the token's real-time value.

The Australian Securities and Investments Commission (ASIC), the nation's domestic securities authority, revised its Australian Financial Services (AFS) license regulations in October 2021.

The move aimed to improve market transparency for Web3 companies and to improve investor protection.According to the rules, a spot ETF needs institutional backing and acceptance of the underlying virtual currency.

In addition, such products must have reputable" and experienced" service providers willing to back them.

Currently, there are only two AFS licensees, one of which is Monochrome's issuing partner for the ETFs, that are authorized to provide retail cryptocurrency licenses.Other licensees are regarded as wholesale and haven't yet been approved to offer these products to retail investors.

Past Australian Attempts at Spot Bitcoin ETFs

In 2022, Cosmos Asset Management attempted to be Australia's foremost spot Bitcoin ETF provider.Regardless, it was considered a fund of funds, providing exposure to a Canadian spot Bitcoin ETF backed by Purpose.

Finally, Global X and 21Shares' spot Bitcoin ETF emerged as the first companies approved and listed in Australia.Cosmos gave up the race and was delisted because of a lack of interest.

Spot Bitcoin Filings have recently gained much traction worldwide, especially in the United States. Between June and July, several notable financial institutions, like the world's largest asset managers, BlackRock, Invesco, Fidelity, WisdomTree, and Valkyrie, applied for a spot in Bitcoin ETF.

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