On October 15, Monochrome Asset Management introduced Australia's first exchange-traded fund (ETF) that directly holds Ether, named the Monochrome Ethereum ETF (IETH).
The ETF went live on the Cboe Australia equities exchange and recorded total net assets amounting to approximately $176,600 (262,500 Australian dollars) by 2:00 PM local time. This launch is a major milestone in the Australian cryptocurrency market since it offers investors direct access to the Ether digital currency through qualified investment instruments.
The IETH features a management fee of 0.50% and allows in-kind applications and redemptions, meaning investors can transact in cash or Ether. This flexibility positions the ETF as a dual-access option for Australian investors interested in Ethereum. BitGo and Gemini, with State Street Australia as the fund administrator, provide the ETF's custodial services.
The introduction of IETH follows the June launch of Monochrome's Bitcoin ETF (IBTC), which has successfully attracted nearly $10.7 million (16 million Australian dollars) in assets. The firm's CEO, Jeff Yew, indicated that a notable trend among clients has been the transfer of cryptocurrency holdings from exchanges into the ETF structure. This shift suggests a growing preference for regulated investment options in crypto as investors seek to manage their assets within more secure and traditional frameworks.
Australia's ETF landscape has seen considerable growth, with the Monochrome Bitcoin ETF being the country's first spot Bitcoin ETF. It boasts total net assets of around $35 million (52 million Australian dollars). The variety of available cryptocurrency ETFs has grown significantly as blockchain and digital assets are gradually adopted into regular trading platforms.
The global market for cryptocurrency ETFs is led by the United States, where 11 spot Bitcoin funds have collectively reached approximately $19.3 billion in assets under management in 2024. This trend highlights a growing appetite for cryptocurrency investment options worldwide.
Australia's market, characterized by its regulatory framework and investor interest, is on a different trajectory. Yew expressed optimism regarding the future performance of spot crypto ETFs in Australia, noting the potential for substantial growth within this investment segment.
On the same day as the IETH launch, data from Farside Investors indicated that combined net inflows into ETFs reached approximately $556 million. This influx signals increasing investor confidence in ETF offerings, including those encompassing cryptocurrencies.