Monochrome Asset Management has introduced Australia’s first exchange-traded fund (ETF) that directly holds Ether (ETH). The Monochrome Ethereum ETF (IETH) was launched on October 15 on the Cboe Australia exchange, becoming the first fund in the region to offer direct exposure to Ether. By mid-afternoon, the fund had accumulated $176,600 in net assets. The IETH fund comes with a management fee of 0.50% and allows in-kind transactions, giving investors the option to trade using cash or Ether, making it a unique dual-access Ether ETF in Australia. The fund’s custodians are BitGo and Gemini, with State Street Australia handling administrative responsibilities.
Following the success of Monochrome’s Monochrome Bitcoin ETF (IBTC) introduced in June 2024, which has amassed $10.7 million in assets, the launch of the IETH fund is part of the growing trend in cryptocurrency ETF adoption worldwide. VanEck introduced Australia’s first spot Bitcoin ETF in June, which now has approximately $35 million in assets. In the global market, the United States leads in crypto ETFs, with 11 spot Bitcoin funds managing $19.3 billion in assets this year. The launch of the IETH fund reflects the increasing interest in cryptocurrency ETFs and the growing appetite for such products in the Australian market.
The U.S. crypto ETF market experienced a surge in inflows on October 14, with U.S.-based spot Bitcoin ETFs recording their highest daily inflow in four months, totaling $555.9 million. This significant influx followed Bitcoin’s recent price surge, reaching a two-week high of $66,500 on the same day. ETF Store President Nate Geraci described it as a “monster day” for the sector, attributing the strong performance to increasing interest from advisers and institutional investors rather than speculative retail traders. Despite the growth of Bitcoin ETFs, Ethereum ETFs are seeing more modest activity, with zero flows for Bitwise, VanEck, Franklin, and Grayscale, and minor flows for Fidelity and Invesco.
The launch of the Monochrome Ethereum ETF (IETH) in Australia follows the success of the Monochrome Bitcoin ETF (IBTC) and reflects the growing trend in the adoption of cryptocurrency ETFs globally. With the United States leading in crypto ETFs and Australia showing a growing appetite for such products, the introduction of the IETH fund provides investors with direct exposure to Ether and the flexibility to trade using either cash or cryptocurrency. The surge in inflows for U.S.-based spot Bitcoin ETFs on October 14 highlights the increasing interest from advisers and institutional investors in the sector, driven by Bitcoin’s recent price surge. Despite the substantial growth of Bitcoin ETFs, Ethereum ETFs are experiencing more modest activity, indicating varying levels of investor interest in different cryptocurrencies.
