Monochrome Asset Management has recently submitted an application to list its new Ethereum exchange-traded fund (ETF) on Cboe Australia. If approved, the fund, trading under the ticker IETH, will provide retail investors with a regulated avenue to gain exposure to Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization. This move comes after the success of Monochrome’s earlier launch of the Monochrome Bitcoin ETF (IBTC), the first in Australia to hold Bitcoin directly, with holdings valued at approximately $11.3 million as of September 4.
The IETH fund, designed to offer dual-access for investors in both cash and in-kind transactions, aims to make it easier for investors to buy into the fund using different methods. Monochrome has also confirmed that, if approved, IETH will be available through major Australian brokerage platforms, increasing its accessibility to retail investors across the country. The company anticipates a decision on the listing before the end of the month.
While Monochrome awaits the outcome of its application, crypto funds globally continue to face challenges. In the U.S., spot Bitcoin ETFs have experienced six consecutive days of net outflows, with significant withdrawals from Grayscale’s GBTC and other funds. U.S. Ethereum ETFs have also seen outflows, with the Grayscale Ethereum Trust (ETHE) recording $40.63 million in net outflows on Wednesday. This trend reflects a broader decline in trading volume across nine Ethereum ETFs, indicating a challenging market environment for crypto funds.
Despite these challenges, Australia’s crypto market has continued to see significant growth in terms of ownership and adoption. With a crypto ownership rate of 17%, higher than the global average of 15%, Australia has emerged as a key market for digital assets. However, the industry has also faced increasing scrutiny from regulators, as evidenced by actions taken against cryptocurrency exchange Binance Australia and the Australian Securities and Investments Commission’s searches at Binance Australia’s offices. In October, the Australian government proposed regulations to subject digital asset platforms to the same laws governing other financial services providers.
In conclusion, Monochrome Asset Management’s application for the Monochrome Ethereum ETF reflects a broader trend of expanding regulated crypto investment products in Australia. If approved, the IETH fund will offer retail investors a new opportunity to gain exposure to Ethereum in a regulated manner. However, the challenges faced by crypto funds globally, including outflows from U.S. Bitcoin and Ethereum ETFs, indicate a complex market environment for digital asset investments. As Australia’s crypto market continues to grow, regulatory scrutiny and evolving regulations will shape the future of the industry in the country.
