The Australian Securities And Investments Commission (ASIC) has given early approval to fund managers seeking to launch Bitcoin spot exchange traded funds (ETFs), according to Business Insider.
Many Australian funds have already begun the application process after ASIC green lit the spot ETFs. After months of consulting with experts in the Bitcoin and crypto industry, the corporate regulators issued new guidance for the space, and detailed a draft of regulatory requirements for funds eager to offer Bitcoin spot ETFs.
In a statement on Friday, ASIC wrote, “We recognise the interest in, and demand for, ETPs and other investment products that hold crypto-assets in Australia.” One requirement for fund managers is they will need to appoint a Bitcoin custodial expert who is “required to ensure crypto-assets are held in safe and secure custody”.
Safe and secure custody includes storing Bitcoin private keys in air-gapped cold storage, through wallets which are subject to “robust physical security practices.” Redundant backups of seed phrases stored in geographically separate locations are also required, according to the Sydney Morning Herald.
Funds must also front a minimum of $10 million in net tangible assets to launch a Bitcoin ETF, along with adhering to other pricing and risk management obligations.
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