- Monochrome launches Australia’s first Ether ETF, managing $176,600 in assets on Cboe Australia.
- The IETH ETF offers dual-access with both cash and Ether transactions, a unique feature in Australia.
- Monochrome’s Bitcoin ETF, launched in June, now manages $10.7M, reflecting strong investor interest in crypto ETFs.
The Monochrome Ethereum ETF debuted on Cboe Australia on October 15, following the introduction of the issuer’s spot Bitcoin ETF in June. Monochrome Asset Management established Australia’s first exchange-traded fund (ETF) that directly holds Ether, with assets under management totaling $176,600.
Significant Assets Under Management
As of its launch, the Monochrome Ethereum ETF (IETH) reported assets under management totaling $176,600 (approximately 262,500 Australian dollars). By 2:00 PM local time, this figure reflects early interest in the fund.
With a management fee set at 0.50%, the ETF provides dual-access options for investors. They can transact in cash or Ether, making it the only dual-access spot Ether ETF available in Australia.
Monochrome has partnered with BitGo and Gemini as custodians for the cryptocurrency, ensuring secure handling of assets. Additionally, State Street Australia will serve as the fund administrator, offering robust infrastructure and support for the new ETF.
Market Trends and Insights
The launch of IETH comes on the heels of Monochrome’s previous success with its Bitcoin ETF (IBTC), which has attracted almost $10.7 million (16 million Australian dollars) since its inception, according to the company.
CEO Jeff Yew recently shared insights on the firm’s strategy. He noted that clients are increasingly transferring their crypto holdings from exchanges to the ETF structure. Yew expressed confidence in the growth potential of spot crypto ETFs in Australia. He remarked on the country’s unique trajectory in the ETF space, indicating a larger market for growth.
Yew’s comments highlight a notable trend among investors seeking safer avenues for their digital assets. By funneling cryptocurrency into established structures like ETFs,
investors can mitigate risks associated with holding assets on exchanges. This movement reflects a broader shift toward regulated investment vehicles in the crypto market.
Competition and Global Context
Australia’s first spot Bitcoin ETF was introduced by VanEck in June and has achieved total net assets of about $35 million (52 million Australian dollars). This competitive landscape signals growing interest in cryptocurrency investments among Australian investors.
Globally, the United States maintains a leading position in the crypto ETF market. With 11 spot Bitcoin funds operating in the country, they have collectively amassed $19.3 billion in assets under management this year. As of October 14, preliminary data from Farside Investors suggested a joint net inflow of $556 million into ETFs, highlighting the growing appeal of these investment products.
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