There may be a workaround for you.
You could use an e-wallet like Neteller or Skrill that has a working prepaid MasterCard
attached to your e-wallet account. Unfortunately, funds that you deposit with Bitcoin into
your Neteller account (Neteller has a Bitcoin deposit option) can´t be used for ATM withdrawals and have to be used to pay at a merchant
or for a P2P payment to another user.
However, you could sell your Bitcoin (or the altcoin of your choice) to a reputable user, who sends
you funds on Neteller. Afterwards you can easily withdraw the funds using the Net+ Mastercard without any
restrictions.
Thanks for the idea but it sounds far too much like hard work and I've heard enough horror stories about Neteller to not want to go there.
I assume companies like Xapo will be working hard to find other options as that's one of their main selling points. I'll wait for them to sort something out. There are too many fly by night operations in this area.