Launch of the Monochrome Ethereum ETF (IETH)
On October 15, the first Australian ETF directly holding Ether, called Monochrome Ethereum ETF (IETH), was launched on the Cboe Australia exchange. This fund manages assets worth $176,600 (AUD 262,500) as of 2:00 PM local time, according to the Cboe Australia exchange. This launch is another step for Monochrome Asset Management, which had previously launched a #SpotBitcoinETF in June.
Fees and Transaction Options
The Monochrome #EthereumETF offers a management fee of 0.50%. The fund allows for both cash and non-cash applications and redemptions, meaning that transactions can be made in either cash or Ether. This ETF is unique in Australia, as it is the only one offering a dual approach to Ether.
Custodians and Fund Administrators
The cryptocurrency custodians for this ETF are BitGo and Gemini, while the fund administrator is State Street Australia. Monochrome relies on these partners to ensure the safe storage of cryptocurrencies and professional fund management.
Following the Success of the Bitcoin ETF
Previous Success with the Bitcoin ETF
The Monochrome Ethereum ETF follows the successful launch of the Monochrome Bitcoin ETF (IBTC) in June. According to the company, this fund has accumulated nearly $10.7 million (AUD 16 million) in managed assets. Jeff Yew, CEO of Monochrome Asset Management, recently told Cointelegraph that the biggest growth in the Bitcoin ETF was due to clients transferring cryptocurrencies from exchanges into the fund.
Moving Cryptocurrencies from Exchanges to ETFs
"More and more cryptocurrencies that were previously held on exchanges are now moving into traditional financial structures, such as ETFs," said Yew. He also expressed confidence that spot crypto ETFs would perform well in the Australian market, noting that the market is on a "very different trajectory with ETFs [...] with a larger pie to slice."
Comparison with the Global Market
Spot Bitcoin ETFs in Australia and the USA
In Australia, the first spot Bitcoin ETF was launched by VanEck in June. This fund currently manages net assets worth approximately $35 million (AUD 52 million). The United States remains the global leader in crypto ETFs, with 11 spot Bitcoin funds that have accumulated $19.3 billion in managed assets so far this year.
Growing Interest in ETFs
According to preliminary data from Farside Investors, October 14 was a significant day for ETF inflows, with funds globally seeing a net inflow of $556 million. This suggests a growing interest in cryptocurrency investment funds.
What do you think about the future of Ether ETFs in Australia? Do you see potential for further growth? Share your opinion in the comments!
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