Sydney, Australia, Tuesday, October 15, 2024- Monochrome Asset Management launched Australia’s first exchange-traded fund (ETF) directly holding Ether (ETH) earlier today.
The Monochrome Ethereum ETF (IETH) began trading on the Sydney-based Cboe Australia with initial net assets reaching $176,600 (AUD 262,500) by 2 PM local time.
The IETH ETF offers dual-access options, allowing for both cash and Ether transactions. This unique feature is expected to attract long-term crypto investors seeking flexibility and greater tax efficiency through in-kind applications and redemptions.
The ETF’s management fee is set at 0.50%, positioning it competitively within the market. The fund is supported by leading crypto custodians BitGo and Gemini, while State Street Australia serves as the fund administrator.
Monochrome’s latest launch follows the success of its Bitcoin ETF (IBTC), which debuted in June 2023 and has since accumulated nearly $10.7 million (AUD 16 million) in assets under management. CEO Jeff Yew believes that crypto ETFs will perform well in the Australian market, highlighting that more investors are transferring their assets from exchanges into regulated structures like ETFs.
Yew expressed confidence in the future of spot crypto ETFs, noting that Australia offers a different growth trajectory compared to other markets, with strong demand for innovative investment options. Monochrome hopes that IETH’s direct Ether holdings and its in-kind feature will further differentiate the product from other offerings in the market.
This launch places Australia alongside global leaders in cryptocurrency ETFs, with the U.S. continuing to dominate the market. In the U.S., 11 spot Bitcoin ETFs have amassed $19.3 billion in assets in 2024 alone.
