The Monochrome Bitcoin Fund has been awarded an investment-grade rating by research house SQM Research, allowing it to be considered for inclusion on the approved product lists of financial advice licensees.
The critical rating is believed to be only the second of its type granted to a Bitcoin fund in Australia.
The manager believes the development will now provide wholesale investors and financial advisers a greater level of confidence with regard to investing in the fund.
“Following a period of hard, diligent work by our team, Monochrome has earnt an investment-grade rating for the Monochrome Bitcoin Fund,” Monochrome head of distribution Craig Hobart said.
“This 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.”
In awarding the rating to the Monochrome Bitcoin Fund, SQM Research took into account characteristics of the offering such as associated risk, governance, liquidity and compliance.
The news consolidates the manager’s interaction with financial advisers after Monochrome launched a Bitcoin research facility late last year.
The information hub has been provided to advisers free of charge and is aimed at dispelling commonly held concerns the industry has about digital assets.
Specific topics covered by Monochrome Research include the evolution of digital assets and Bitcoin, as well as the valuation of this asset class.
In addition, regulation and ethical considerations advisers might have to discuss with their clients are also detailed.
Further, use of the service can count towards practitioners’ continuing professional development requirements.
The facility was originally established as a result of research Monochrome conducted among the advisory community.