Monochrome Asset Management has launched Australia’s first exchange-traded fund (ETF) that directly holds Ether (ETH). The Monochrome Ethereum ETF (IETH) made its debut on October 15 on the Cboe Australia exchange, marking the first of its kind in the region to provide direct exposure to Ether.
By mid-afternoon on its launch day, the fund had already accumulated $176,600 in net assets, equivalent to 262,500 Australian dollars, as reported by Cboe Australia.
IETH Fund with 0.50% Management Fee
The IETH fund offers a 0.50% management fee and includes the ability for in-kind transactions, allowing investors to trade with either cash or Ether. This unique feature makes it the only dual-access Ether ETF in Australia, offering investors seamless movement between fiat and cryptocurrency.
The ETF’s custodial services are handled by BitGo and Gemini, with State Street Australia managing its administrative duties.
Monochrome’s Previous Success and Growing ETF Market
Monochrome launched its Monochrome Bitcoin ETF (IBTC) earlier in June 2024, which has since attracted $10.7 million (16 million Australian dollars) in assets. Monochrome CEO Jeff Yew attributed a significant portion of the growth to investors transferring their cryptocurrency from exchanges into the ETF.
Yew explained that spot crypto ETFs have shown strong performance in the Australian market, driven by increasing investor appetite for crypto-backed products. “Australia is on a different trajectory with ETFs, and there’s a much larger market to explore,” he added.
Global Growth in Crypto ETFs
Monochrome’s Ethereum ETF reflects a growing global trend in the adoption of cryptocurrency ETFs. In June, VanEck launched Australia’s first spot Bitcoin ETF, now holding $35 million in assets (52 million Australian dollars).
Globally, the United States leads the charge in crypto ETFs, with 11 spot Bitcoin funds collectively managing $19.3 billion in assets as of this year. Notably, the U.S. crypto ETF market saw a surge on October 14, with $555.9 million flowing into spot Bitcoin ETFs, marking the largest inflow in four months, following a rise in Bitcoin’s price to a two-week high of $66,500.
Despite the excitement around Bitcoin ETFs, Ethereum ETFs have experienced more modest activity. On Monday, companies like Bitwise, VanEck, Franklin, and Grayscale saw no significant flows, while Fidelity and Invesco saw minor ones.
Growing Sentiment for Crypto Investments
The recent surge in digital asset investment products, which saw inflows of $407 million last week, suggests rising investor interest, particularly in anticipation of the upcoming U.S. elections.
Website: CentBit.Online – Crypto & Blockchain Expert Bangladesh
