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

Monochrome Asset Management has launched Australia’s first exchange-traded fund (ETF) that holds Ether (ETH) directly.

On October 15, the Monochrome Ethereum ETF (IETH) debuted on the Cboe Australia exchange, marking it as the first such fund in the region to provide direct access to Ether.

By midday, the fund had amassed a net asset value of $176,600 (equivalent to 262,500 Australian dollars), as per Cboe Australia’s reports.

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Australia’s IETH Fund Charges a Management Fee of 0.50%

The IETH fund charges a management fee of 0.50% and offers in-kind transactions, enabling investors to trade using either cash or Ether.

This dual-access feature makes IETH a standout option in Australia, as it is the only Ether ETF that permits seamless transitions between fiat currency and cryptocurrency.

BitGo and Gemini are responsible for safeguarding the fund’s assets, while State Street Australia oversees administrative duties.

The introduction of IETH follows Monochrome’s successful launch of its Monochrome Bitcoin ETF (IBTC) in June 2024.

Since its inception, IBTC has accumulated approximately $10.7 million in assets (or 16 million Australian dollars), according to company statistics.

Commenting on this growth last month, Monochrome Asset Management CEO Jeff Yew explained that a significant portion of the inflows came from clients moving their cryptocurrency holdings from exchanges into the ETF.

“The biggest growth we’ve seen for our Bitcoin ETF has been from crypto that was previously held on exchanges,” Yew said.

He added that he expects spot crypto ETFs to continue to perform well in the Australian market due to its growing appetite for such products.

“Australia is on a different trajectory with ETFs, and there’s a much larger market to explore,” Yew explained.

The launch of Monochrome’s Ether ETF aligns with a broader global trend towards increasing adoption of cryptocurrency ETFs.

In June, VanEck introduced Australia’s first spot Bitcoin ETF, which currently holds approximately $35 million in assets (equivalent to 52 million Australian dollars).

On a global scale, the United States is at the forefront of crypto ETFs, with 11 spot Bitcoin funds collectively managing $19.3 billion in assets this year.

Bitcoin ETFs See Largest Inflows in 4 Months

The U.S. crypto ETF market has witnessed a significant surge in inflows recently.

On October 14, U.S.-based spot Bitcoin ETFs experienced their highest daily inflow in four months, with a total of $555.9 million pouring into the funds.

This inflow coincided with a price surge for Bitcoin, which reached a two-week high of $66,500 on the same day.

ETF Store President Nate Geraci described this as a “monster day” for the sector, noting that the inflows exceeded pre-launch estimates.

He attributed this robust performance to the 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 Monday, Bitwise, VanEck, Franklin, and Grayscale reported zero flows, while Fidelity and Invesco saw minor flows.

As reported, last week, digital asset investment products witnessed a significant surge in inflows, totaling $407 million, largely fueled by investor sentiment surrounding the upcoming U.S. elections.

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