A Brisbane-based Bitcoin fund has become just the second Australian crypto fund to receive an “investment-grade” rating, meaning financial advisors will be able to consider it for their approved products list.
While it’s simple and easy for retail investors to simply buy Bitcoin on a crypto exchange, things are much more complicated for wholesale investors such as family offices, institutions, companies and super funds.
The Monochrome Bitcoin fund, which has a $50,000 minimum investment, offers wholesale investors exposure to BTC in the form of a unit trust, a well-understood asset class here.
Achieving an investment-grade rating should provide Australian wholesale investors and advisers with increased confidence in the fund, said Monochrome’s head of distribution, Craig Hobart.
SQM’s research rating process involved a review of key criteria such as governance, compliance, liquidity and risks.
It was “a period of hard, diligent work by our team,” Hobart said.
The investment-grade rating, he said, “represents an important step in providing market participants with access to Bitcoin via a regulated, and now rated, managed investment scheme.”
“We believe this rating confirms the quality of the product, and gives financial advisers a new means to engage with wholesale clients and the digital asset market.”