Reports reveal that Australian Securities Regulators have given the signal of approval of Bitcoin ETFs in the country.
According to a report from Business Insider, the Australian Securities and Investments Commission (ASIC) has given a green light to fund managers, who are looking for opportunities to introduce Bitcoin ETFs in Australia. Following the approval, various funds in Australia have already started to commence the procedures for applications. The Australian regulators were apparently working with Bitcoin and Crypto Industry Experts for many months and have now come up with a new set of regulatory guidelines that highlight the certain requirements that are to be met for the successful introduction of Bitcoin ETFs in Australia.
The news about Australian regulatory authorities launching Bitcoin ETF comes just right after the two entities named Valkyrie and ProShares were successful in launching Bitcoin futures ETFs in the United States of America.
The ASIC issued a statement on Friday, in which they said that they are definitely aware of the level of interest and demand of Bitcoin ETFs and other products that involve cryptocurrencies, in Australia. The ASIC also said that one of the main requirements for Bitcoin ETFs to be operational is that fund managers will need to assign a Bitcoin-based custodial professional, whose job will be to ensure that the crypto-based assets are fully protected from the dangers of unwanted external entities.
Protection of Assets
According to the Sydney Morning Herald, for assets to be safe and secure, Bitcoin private keys must be stored in cold storage with the help of wallets, which will ensure tough physical security. Another requirement is that backups of seed phrases will need to be stored in different locations. Funds will also have to have a minimum value of $10Million in net tangible assets, in order to proceed with the birth of a Bitcoin ETF, also making sure that rules regarding pricing and risk management are strictly followed.
On the question about why only Bitcoin ETFs? The ASIC answered that they are fully aware of different crypto assets that have different “features and characteristics”, but they think that only some of the assets are viable of being brought up in a fully “registered managed investment scheme”.