Monochrome Asset Management has formally applied to list its new Ethereum exchange-traded fund (ETF) on Cboe Australia. The application, announced in a press release on Thursday, is expected to be reviewed by the end of the month.
The proposed Ethereum ETF, set to trade under the ticker IETH, aims to offer retail investors a regulated way to gain exposure to Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization. If approved, the IETH fund will enhance Australia’s growing selection of regulated crypto investment products.
IETH Fund to Complement Existing Crypto ETFs
The IETH ETF will follow Monochrome’s earlier success with the Monochrome Bitcoin ETF (IBTC), which was the first in Australia to hold Bitcoin directly. As of September 4, the IBTC fund’s Bitcoin holdings were valued at approximately $11.3 million, reflecting significant interest.
The IETH fund is designed with flexibility in mind, allowing transactions in both cash and in-kind to accommodate various investment preferences. Upon approval, IETH will be accessible through major Australian brokerage platforms, broadening its availability to retail investors nationwide.
Global Crypto Funds Face Challenges
As Monochrome awaits the decision on its application, global crypto funds are experiencing notable challenges. In the U.S., spot Bitcoin ETFs have faced six consecutive days of net outflows, with $37.29 million exiting these products as of Wednesday. The Grayscale Bitcoin Trust (GBTC), the second-largest spot Bitcoin ETF, saw the largest outflows at $34.25 million, while other products like Fidelity’s FBTC and VanEck’s HODL also recorded significant withdrawals.
Ethereum ETFs in the U.S. are similarly facing outflows. The Grayscale Ethereum Trust (ETHE) recorded net outflows of $40.63 million on Wednesday, although the Grayscale Ethereum Mini Trust (ETH) saw inflows of $3.12 million. Overall trading volume across the nine Ethereum ETFs decreased to $145.86 million from $163.5 million the previous day.
Australia’s Crypto Market and Regulatory Landscape
Australia’s crypto market has been expanding, with a reported 17% of Australians owning cryptocurrencies, surpassing the global average of 15%. However, the industry faces increasing regulatory scrutiny. Last year, Binance Australia customers lost access to Australian dollar deposits and withdrawals due to a third-party service provider’s decision. In July, the Australian Securities and Investments Commission (ASIC) conducted searches at Binance Australia’s offices.
Additionally, the Australian government proposed in October to subject digital asset platforms to the same regulatory framework as traditional financial services providers, reflecting the growing oversight in the sector.
As Monochrome’s IETH ETF awaits approval, the evolving landscape highlights both opportunities and challenges in the global and Australian crypto markets.