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

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

The Monochrome Ethereum ETF (IETH) debuted on October 15 on the Cboe Australia exchange, making it the first fund of its kind in the region to offer direct Ether exposure.

By mid-afternoon, the fund had already accumulated $176,600 in net assets (262,500 Australian dollars), according to reports from Cboe Australia.

Australia’s IETH Fund Comes with a Management Fee of 0.50%

The IETH fund comes with a management fee of 0.50% and allows in-kind transactions, meaning investors can carry out trades using either cash or Ether.

This flexibility makes it a unique option in Australia, as it’s the only dual-access Ether ETF available, allowing investors to seamlessly move between fiat and cryptocurrency.

BitGo and Gemini serve as the fund’s custodians, while State Street Australia handles administrative responsibilities.

The launch of IETH follows Monochrome’s earlier success with its Monochrome Bitcoin ETF (IBTC), which was introduced in June 2024.

IBTC has since garnered approximately $10.7 million in assets (16 million Australian dollars), according to company figures.

Monochrome Asset Management CEO Jeff Yew commented on this growth last month, explaining 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.

Monochrome’s Ether ETF launch is part of a broader trend in the growing adoption of cryptocurrency ETFs worldwide.

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

On the global stage, the United States leads the charge in crypto ETFs, with 11 spot Bitcoin funds collectively managing $19.3 billion in assets so far this year.

Bitcoin ETFs See Largest Inflows in 4 Months

The U.S. crypto ETF market has also seen a surge in inflows.

On October 14, U.S.-based spot Bitcoin ETFs recorded their highest daily inflow in four months, with a combined $555.9 million flowing into the funds.

This influx followed Bitcoin’s recent price surge, which saw the cryptocurrency reach a two-week high of $66,500 on the same day.

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

He attributed the strong performance to the increasing interest from advisers and institutional investors, rather than speculative retail traders.

Interesting, since the launch of the bitcoin ETFs bitcoin has hit records highs 5 times but gold has hit record highs 30 times.. albeit has only taken in $1.4b in net flows vs $19b for btc ETFs.. via @psarofagis pic.twitter.com/3ZNbuW1XJW

— Eric Balchunas (@EricBalchunas) October 14, 2024

While Bitcoin ETFs are seeing substantial growth, Ethereum ETFs are experiencing more modest activity.

On Monday, Bitwise, VanEck, Franklin, and Grayscale saw zero flows, while Fidelity and Invesco saw minor flows.

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