Monochrome Asset Management is making waves in the Australian financial landscape with its latest move: the proposed launch of an Ethereum exchange-traded fund (ETF) on Cboe Australia. Announced in a Thursday press release, Monochrome anticipates a decision on its application by the end of the month.
The ETF, set to trade under the ticker IETH, aims to offer retail investors a regulated pathway to gain exposure to Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization. If approved, IETH will be a significant addition to Australia’s growing roster of regulated crypto investment products.
A New Era For Australian Crypto ETFs
The IETH fund is designed to provide dual-access for investors, allowing transactions in both cash and in-kind. This flexibility is intended to simplify the investment process, catering to different investor needs. Once approved, IETH will be accessible through major Australian brokerage platforms, making it easier for retail investors to get involved.
This new ETF follows Monochrome’s successful launch of the Monochrome Bitcoin ETF (IBTC), Australia’s first fund to hold Bitcoin directly. As of September 4, the IBTC fund boasts Bitcoin holdings valued at approximately $11.3 million, underscoring its significant market impact.
Global Crypto Fund Challenges
While Monochrome’s initiative represents a positive development for Australian crypto investors, global crypto funds are currently facing headwinds. In the U.S., spot Bitcoin ETFs have experienced six consecutive days of net outflows, with $37.29 million exiting the products on Wednesday. Grayscale’s GBTC saw the largest outflows, amounting to $34.25 million, while other prominent funds like Fidelity’s FBTC and VanEck’s HODL also faced significant withdrawals.
Ethereum ETFs in the U.S. have similarly struggled, with the Grayscale Ethereum Trust (ETHE) recording net outflows of $40.63 million on Wednesday. Despite this, the Grayscale Ethereum Mini Trust (ETH) saw inflows of $3.12 million, indicating mixed investor sentiment.
Australia’s Crypto Market Expansion
Australia’s crypto market continues to thrive despite regulatory scrutiny. With a crypto ownership rate of 17%, the country surpasses the global average of 15%. However, the sector has faced challenges, including Binance Australia’s loss of Australian dollar deposit and withdrawal capabilities due to third-party service issues and recent searches by the Australian Securities and Investments Commission (ASIC).
The Australian government is also considering proposals to subject digital asset platforms to the same regulations as other financial services providers, reflecting the increasing regulatory focus on the sector.
Monochrome’s proposed Ethereum ETF marks a promising development for Australian investors, providing a regulated and flexible option to engage with Ethereum. As the global crypto market navigates ongoing challenges, Australia’s continued expansion and regulatory adjustments highlight the evolving landscape of digital asset investments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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