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Monochrome Asset Management has announced its application for the first spot Ether exchange-traded fund (ETF) in Australia, aiming to list the Monochrome Ether ETF (IETH) on Cboe Australia by the end of September. The application marks a significant development in the Australian financial landscape, as it represents the first direct-holding Ether ETF in the country.
Jeff Yew, CEO of Monochrome Asset Management, expressed optimism about the ETF’s, attributing this confidence to several key factors. Yew highlighted the success of the firm’s Bitcoin ETF, which benefits from an in-kind subscription model allowing investments via both fiat and digital assets. This model has reportedly driven significant growth for the Bitcoin ETF, as it facilitates the transfer of custody from crypto exchanges into the ETF.
As of September 5, Monochrome’s Bitcoin (ETF) has accumulated over $7.6 million in assets. Despite this being modest compared to US-listed Bitcoin ETFs and some Australian competitors, Yew believes the less restrictive regulatory environment in Australia provides a unique opportunity for ETFs to offer fully regulated investment products. He noted that many crypto exchanges have long served retail and professional investors, suggesting a well-established market for crypto assets in Australia.
Comparatively, other Australian ETFs such as the VanEck Bitcoin ETF (VBTC), launched on July 13, has reported net holdings exceeding $26 million. The Global X 21Shares Bitcoin ETF, which invests in physical Bitcoin, manages assets over $65 million. In the US, prominent Bitcoin ETFs include BlackRock’s iShares Bitcoin Trust (IBIT) with over $20 billion in inflows, Fidelity’s Wise Origin Bitcoin Fund (FBTC) with nearly $10 billion, and the ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB), each with around $2 billion in net inflows.
Monochrome’s Bitcoin ETF, launched in June, was the first in Australia to receive approval under the 2021 Australian financial services license for a spot crypto ETF, underscoring the firm’s pioneering role in the Australian market.
