The fund’s responsible entity partner received unique licensure which will give investors more transparent and direct exposure to bitcoin through a spot ETF.
AFS guidelines also suggest asset managers do not use hot wallets, or wallets connected to the internet. Instead, the regulator states asset managers should opt to use cold storage, or devices with limited connectivity to the internet. Furthermore, AFS licensure states that investors should “have access to an appropriate compensation system” in the event of a loss of private keys.
“The regulator’s approval of this license variation represents a major step forward for both the advice industry and retail investors, allowing advisers to meet the market demands of their clients when it comes to the nascent crypto-asset class,” said Monochrome’s CEO, Jeff Yew, per the Financial Standard report.
