Australia Launches First ETF Directly Holding Ether

On October 15, Monochrome Asset Management officially launched Australia’s first exchange-traded fund (ETF) that directly holds Ether, named the Monochrome Ethereum ETF (IETH), on the Cboe Australia exchange. This milestone follows the issuer's successful launch of a spot Bitcoin ETF earlier this year in June.

By 2:00 PM local time, the IETH ETF reported total net assets of approximately $176,600 (or 262,500 Australian dollars). The fund features a competitive management fee of 0.50% and allows for in-kind applications and redemptions, facilitating transactions in both cash and Ether (ETH), currently priced at $2,612.07. Notably, IETH stands out as the only dual-access spot Ether ETF available in Australia.

The crypto custodians for the ETF are BitGo and Gemini, with State Street Australia serving as the fund administrator. The launch of IETH comes on the heels of the Monochrome Bitcoin ETF (IBTC), which debuted in June and has attracted nearly $10.7 million (16 million Australian dollars) in assets under management.

Jeff Yew, CEO of Monochrome Asset Management, expressed optimism regarding the performance of spot crypto ETFs in the Australian market, citing a notable trend of clients transferring their cryptocurrency holdings from exchanges into structured investment vehicles like ETFs. “More and more crypto that had been previously held on exchanges is now being funneled into a regular structure like an ETF,” Yew noted last month.

Yew also highlighted that Australia is on a different trajectory regarding ETFs, presenting significant growth opportunities.

In June, VanEck launched Australia’s first spot Bitcoin ETF, which has since accumulated around $35 million (52 million Australian dollars) in assets. Globally, the United States remains the leader in crypto ETFs, with 11 spot Bitcoin funds collectively managing $19.3 billion in assets this year.

According to preliminary data from Farside Investors, October 14 was a significant day for ETF inflows, with the funds experiencing a combined net inflow of $556 million, indicating robust interest in cryptocurrency investment products.

This launch marks a pivotal moment in Australia’s financial landscape, offering investors a new avenue to gain exposure to Ether within a regulated framework.