Monochrome Asset Management Submits Ethereum ETF Application
Monochrome Asset Management has officially submitted an application to list its new Ethereum exchange-traded fund (ETF) on Cboe Australia. This announcement was made in a press release on Thursday, where the company mentioned that a decision on the ETF is expected before the end of the month.
Details of the Proposed Ethereum ETF
The proposed ETF will trade under the ticker IETH and aims to offer retail investors a regulated way to gain exposure to Ethereum (ETH), the second-largest cryptocurrency by market capitalization. If approved, IETH will represent a significant addition to Australia’s growing portfolio of regulated cryptocurrency investment products.
Expansion of Crypto ETFs in Australia
If the IETH fund receives approval, it will build on the foundation laid by Monochrome’s earlier launch, the Monochrome Bitcoin ETF (IBTC), which was the first in Australia to hold Bitcoin directly. The IBTC fund has seen substantial interest, boasting Bitcoin holdings valued at approximately $11.3 million as of September 4, according to the company’s website.
Monochrome’s initiative to introduce the IETH ETF is part of a broader trend in Australia, where the demand for cryptocurrency investment options is on the rise, providing a regulated pathway for retail investors to engage with digital assets.
Investor Flexibility with IETH
The IETH fund is designed to offer dual-access for investors, allowing them to conduct transactions in both cash and in-kind. This feature aims to enhance the ease of investing in the fund, catering to a variety of investor preferences and strategies. Upon approval, Monochrome has confirmed that IETH will be available through major Australian brokerage platforms, thereby increasing its accessibility to a broader base of retail investors across the country.
Current Challenges Facing Global Crypto Funds
As Monochrome awaits the outcome of its application, the global landscape for crypto funds continues to encounter obstacles. In the United States, spot Bitcoin ETFs have recently experienced a wave of net outflows. On Wednesday, these products saw a whopping $37.29 million exit, with Grayscale’s GBTC—one of the largest spot Bitcoin ETFs—recording an outflow of $34.25 million. Other products, such as Fidelity’s FBTC and VanEck’s HODL, also reported significant withdrawals.
Similar trends are observed in the Ethereum ETF space, where the Grayscale Ethereum Trust (ETHE) recorded net outflows of $40.63 million, despite some inflows in the Grayscale Ethereum Mini Trust (ETH), which saw a net increase of $3.12 million.
Growth of Cryptocurrency in Australia
The cryptocurrency market in Australia has shown remarkable growth in terms of ownership and adoption. Recent reports indicate that the crypto ownership rate in Australia stands at 17%, surpassing the global average of 15%. However, this rising interest has coincided with intensified scrutiny from regulatory bodies.
In May of last year, for example, Binance Australia informed its customers about losing access to Australian dollar deposits and withdrawals due to changes made by a third-party service provider. Furthermore, in July, officials from the Australian Securities and Investments Commission (ASIC) conducted searches at Binance Australia’s offices, highlighting the growing regulatory challenges within the sector. In a significant move, the Australian government announced a proposal in October that aims to subject digital asset platforms to the same regulations that govern traditional financial services providers.