Monochrome Asset Management has introduced Australia’s inaugural exchange-traded fund (ETF) that directly holds Ether. As of October 15, the Monochrome Ethereum ETF (IETH) commenced trading on Cboe Australia’s equities exchange, registering total net assets of AUD 262,500 (approximately $176,600) by 2:00 PM local time.
This ETF comes with a management fee of 0.50% and features the option for in-kind applications and redemptions, enabling transactions in both cash and Ether (ETH). IETH is distinctive as the only dual-access spot Ether ETF available in Australia. It has enlisted BitGo and Gemini to serve as its crypto custodians, while State Street Australia manages the fund’s administration.
IETH’s unveiling follows the launch of Monochrome’s Bitcoin ETF (IBTC) in June, which has successfully gathered nearly AUD 16 million ($10.7 million) in net assets. The previous success of the Bitcoin ETF indicates a growing trend where clients are transferring cryptocurrencies held on exchanges into structured investment vehicles such as ETFs.
The Australian market appears well-positioned for the performance of spot crypto ETFs, reflecting a unique trajectory compared to other global markets. This suggests significant potential for future growth as there is an increasing appetite for regulated structures in cryptocurrency investment.
Earlier this year, VanEck also launched Australia’s first spot Bitcoin ETF, which currently manages around AUD 52 million ($35 million) in assets. In contrast, the United States is leading the global charge in crypto ETFs, with a total of 11 spot Bitcoin funds that have collectively garnered $19.3 billion in assets under management in 2023 alone. Recent data indicates that October 14 saw a significant boost in ETF inflows, with a total of $556 million recorded across various funds.
