Second Australian Bitcoin fund gets 'investment-grade' rating

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.

Monochrome Asset Management’s flagship Monochrome Bitcoin Fund received the rating from SQM Research, which in December gave a similar nod to DigitalX (ASX:DCC)‘s Bitcoin Fund.

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.”