Monochrome Asset Management is set to make history by launching Australia’s first spot Ethereum exchange-traded fund (ETF) on Tuesday, October 15.
The debut of the Monochrome Ethereum ETF, with the ticker IETH, on Cboe Australia, marks a significant milestone for the Australian cryptocurrency market.
This launch follows the introduction of Monochrome’s spot Bitcoin ETF in August, which reported holding approximately 167 Bitcoin valued at AUD 15 million.
In early September, Monochrome and Vasco Trustees Limited submitted their application for IETH’s listing, indicating that the spot Ethereum ETF will passively hold Ether. This innovative approach offers retail investors a regulated pathway to gain exposure to Ether, the second-largest cryptocurrency by market capitalization, currently exceeding $316 billion.
IETH operates as a dual-access fund, providing investors the opportunity for both cash and in-kind redemptions. This allows investors to buy and redeem the ETF using Ether. Additionally, State Street Australia will manage the fund, with BitGo and Gemini providing custody services.
The U.S. Securities and Exchange Commission approved its first spot crypto ETFs in January 2024, paving the way for similar products including spot Bitcoin ETFs from major financial firms.
Following the U.S., several regions, including Hong Kong and Australia, have approved spot crypto ETFs. While Australia’s assets held in these funds are relatively modest, the demand in the U.S. market has surged, with net assets in U.S.-listed spot Bitcoin ETFs reaching $58.66 billion as of October 11, and Ethereum ETFs tallying $6.74 billion.
