Monochrome Asset Management Launches Australia’s First Ether-Holding ETF

Monochrome Asset Management has officially launched Australia’s first exchange-traded fund (ETF) that directly holds Ether (ETH). The Monochrome Ethereum ETF (IETH) made its debut on October 15 on the Cboe Australia exchange, marking a significant milestone for the region by providing direct exposure to Ether.

By mid-afternoon on its launch day, the fund had attracted approximately $176,600 in net assets (around 262,500 Australian dollars), as reported by Cboe Australia.

Unique Features of the IETH Fund

The IETH fund comes with a management fee of 0.50% and allows for in-kind transactions, enabling investors to trade using either cash or Ether. This dual-access feature sets it apart in Australia, making it the only Ether ETF that facilitates seamless movement between fiat currency and cryptocurrency.

Custodians for the fund include BitGo and Gemini, while State Street Australia manages its administrative functions. The introduction of IETH follows the success of Monochrome’s earlier offering, the Monochrome Bitcoin ETF (IBTC), which launched in June 2024 and has since accumulated approximately $10.7 million in assets (16 million Australian dollars).

Monochrome Asset Management CEO Jeff Yew noted last month that a significant portion of inflows into the Bitcoin ETF came from clients transferring their cryptocurrency holdings from exchanges into the fund. “The biggest growth we’ve seen for our Bitcoin ETF has been from crypto that was previously held on exchanges,” he stated. Yew expressed optimism for the performance of spot crypto ETFs in the Australian market, citing a growing appetite for such investment products.

Growing Adoption of Cryptocurrency ETFs

The launch of Monochrome’s Ether ETF aligns with a global trend of increasing adoption of cryptocurrency ETFs. In June, VanEck introduced Australia’s first spot Bitcoin ETF, which now manages around $35 million in assets (52 million Australian dollars).

On the global front, the United States continues to lead in crypto ETF offerings, with 11 spot Bitcoin funds collectively managing $19.3 billion in assets so far this year.

U.S. Crypto ETF Market Sees Significant Inflows

The U.S. crypto ETF market has also witnessed a surge in inflows. On October 14, spot Bitcoin ETFs recorded their largest daily inflow in four months, totaling $555.9 million. This influx coincided with Bitcoin reaching a two-week high of $66,500 on the same day.

ETF Store President Nate Geraci characterized it as a “monster day” for the sector, emphasizing that the inflows exceeded pre-launch estimates. He attributed the strong performance to growing interest from advisers and institutional investors, rather than speculative retail traders.

While Bitcoin ETFs are experiencing substantial growth, Ethereum ETFs have seen more modest activity. On the same day, Bitwise, VanEck, Franklin, and Grayscale reported zero flows, while Fidelity and Invesco noted only minor inflows.

Overall, digital asset investment products saw significant inflows last week, reaching $407 million, largely driven by investor sentiment surrounding the upcoming U.S. elections.