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Aussie asset manager to offer crypto ETF using unique license variation

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Australian asset manager Monochrome Asset Management has obtained Australia’s first Financial Services License (AFSL) for a cryptocurrency exchange-listed fund (ETF).

Monochrome Asset Management CEO Jeff Yu told Cointelegraph that AFSL approval is important. This is because to date, cryptocurrency ETFs approved in Australia have only operated under general financial licenses and held crypto assets only indirectly.

Meanwhile, Yew said Monochrome’s crypto ETF will hold the underlying crypto assets directly and has been expressly authorized to do so by the Australian Securities and Investments Commission (ASIC).

Monochrome executives said the approval represents an important step forward for both the advice industry and individual investors.

We believe choice is a good thing for investors, especially when trading in a regulated sector, as not all products are created equal.

Investors who invest in monochrome ETFs should ensure that their funds are invested directly in Bitcoin (BTC) and Ethereum (ETH) and, importantly, the ASIC established by ASIC specifically for crypto assets. You’ll know you’re within the regulatory rails,” he said.

At this stage, there is no definite date for the availability of the Monochrome Bitcoin ETF (IBTC), but it is expected in September 2022, once the PDS and TMD are issued and subject to regulatory approval.

When the ETF becomes available, Yew said, Monochrome will focus on BTC and ETH because they are currently the only two crypto assets identified by ASIC as suitable for retail ETF exposure. “

Over time, as the market matures, we will take an open-minded approach and make new products available.

First crypto ETF

Yew said operating under an Australian Financial Services License (AFSL) with direct authorization for crypto assets will ensure the fund and issuer receive strong oversight from ASIC.

AFSL approval opens new regulated investment opportunities through direct retail investors and licensed financial advisors.

Approval of the Australian Financial Services License Variation means that ASIC has considered and confirmed that the licensee has the appropriate experience with crypto assets to manage an ETF that directly holds Bitcoin and Ethereum. increase.

This provides investors with greater protections built on ASIC’s Report 705, including proper benchmarking against spot prices and Australian compliant custody solutions.

Cointelegraph previously reported that it had been warned by Australian financial regulators about the use of unregistered cryptocurrency businesses.

road to approval

Monochrome Asset Management was founded in early 2021 by former CEO of Binance Australia, Jeff Yu, to drive institutional adoption of crypto assets in Australia.

Related: Following Series A, Digital Asset Manager Monochrome Worth $15 Million

Their ETF plan is underway from February 2022.

Normally, the process of relicensing financial services typically takes 6 to 12 months, but in this case that was the timeline.