The Australian Securities and Investments Commission (ASIC) has taken slow but cautious steps regarding an exchange-traded product tracking the performance of bitcoin or another cryptocurrency.
In the latest development, the organization published guidance detailing regulatory requirements for funds waiting to offer crypto ETPs, including exchange-traded funds (ETFs) and structured products. The guidance is designed to ensure not only investor protection but also increase transparency.
The published document stated that any cryptocurrency must meet five criteria to qualify as a permissible asset to back an ETP or other structured product. These include:
- High level of institutional support and acceptance and being used for investment purposes
- Availability of service providers such as custodians, fund administrators, market makers, and index providers that are reputable and experienced as well as prepared to support ETPs that invest in or offer exposure to the crypto-asset
