Australia’s First ETF Directly Holding Ether Goes Live

Monochrome Asset Management has launched Australia’s first exchange-traded fund (ETF) that directly holds Ether (ETH), marking a significant milestone in the country’s cryptocurrency landscape. The Monochrome Ethereum ETF (IETH) went live on Cboe Australia on October 15, with assets under management reaching $176,600 (approximately 262,500 Australian dollars) by 2:00 PM local time.

Key Features of the Monochrome Ethereum ETF

The IETH fund charges a management fee of 0.50% and allows for in-kind applications and redemptions, meaning investors can transact using either cash or Ether. This dual-access feature makes it the only spot Ether ETF of its kind in Australia.

BitGo and Gemini serve as custodians for the ETF, while State Street Australia manages its administrative functions. The launch of IETH follows Monochrome's earlier success with its Monochrome Bitcoin ETF (IBTC), which debuted in June 2024 and has since accumulated nearly $10.7 million (16 million Australian dollars) in assets.

CEO Insights and Market Confidence

Jeff Yew, CEO of Monochrome Asset Management, shared insights with Cointelegraph last month, noting that the largest growth for the Bitcoin ETF has come from clients transferring their crypto from exchanges into the fund. “Now more and more crypto that had been previously held on exchanges is being funneled into a regular structure like an ETF,” he remarked.

Yew expressed confidence in the performance of spot crypto ETFs in the Australian market, highlighting that the market is on a different trajectory with a larger potential audience.

Growing ETF Market in Australia

Australia’s first spot Bitcoin ETF was launched by VanEck in June and currently holds about $35 million (52 million Australian dollars) in net assets. Meanwhile, the United States continues to lead globally in crypto ETFs, with 11 spot Bitcoin funds collectively managing $19.3 billion in assets as of this year.

On October 14, the ETF market saw a remarkable day for inflows, with funds recording a combined net inflow of $556 million, according to preliminary data from Farside Investors. This surge underscores the increasing interest and investment in cryptocurrency-related products.