Monochrome Asset Management, an Australian firm, has applied to launch the country’s first Ether exchange-traded fund (ETF) that directly holds the asset. The company is optimistic about the approval and aims to list the Monochrome Ether ETF (IETH) on Cboe Australia by the end of September.
Jeff Yew, CEO of Monochrome, told Cointelegraph that he expects significant interest in the Ether ETF, partly due to its in-kind subscription model, allowing investors to invest using either fiat or digital assets. He noted that with their Bitcoin ETF, many investors have moved assets from exchanges to the ETF, driving growth. As of September 5, the Bitcoin ETF had over $7.6 million invested, though it still lags behind U.S. and Australian competitors.
Yew pointed out that Australia’s relatively relaxed approach to crypto regulations has opened the door for ETFs to provide a fully regulated investment option. This shift has seen more crypto assets moving from exchanges into structured ETFs, setting Australia on a unique path compared to other markets.
For context, other Australian crypto ETFs, such as VanEck’s Bitcoin ETF and Global X’s Bitcoin ETF, have outperformed Monochrome’s Bitcoin fund in terms of net holdings. However, U.S.-based ETFs like BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund dwarf their Australian counterparts with billions in inflows.
Monochrome’s Bitcoin ETF, launched in June, was the first in Australia to be approved under the country’s 2021 financial services regulations for spot crypto ETFs.
