Monochrome Asset Management launched Australia’s first Ethereum ETF. The Monochrome Ethereum ETF, known as IETH, debuted on October 15 on the Cboe Australia exchange.
How the IETH fund works?
The IETH fund features a management fee of 0.50% and allows in-kind transactions, which means investors can trade using either cash or Ether.
This flexibility sets it apart in Australia as the only dual-access Ether ETF, enabling investors to switch easily between fiat currency and crypto.
Cboe Australia shared that by mid-afternoon on its launch day, the fund had already gathered $176,600 in net assets, equivalent to 262,500 Australian dollars.
BitGo and Gemini are the custodians for the fund, while State Street Australia manages its administrative tasks.
The introduction of IETH follows Monochrome’s previous success with its Bitcoin ETF, which was launched in June 2024 and has attracted about $10.7 million in assets, or 16 million Australian dollars.
CEO Jeff Yew noted that many new investments came from clients moving their cryptocurrency from exchanges into the ETF.
He believes that spot crypto ETFs will continue to thrive in Australia too, likely due to increasing demand for such products.
Trends are clear in Crypto ETFs, they’re popular
The launch of Monochrome’s Ether ETF is part of a trend of growing acceptance for cryptocurrency ETFs worldwide, not just in Australia.
In June, VanEck introduced Australia’s first spot Bitcoin ETF, which now holds around $35 million in assets.
On a global scale, not surprisingly the United States is leading the way in crypto ETFs, with 11 spot Bitcoin funds managing a total of $19.3 billion in assets this year.
The U.S. crypto ETF market has seen a big rise in inflows in the past days. On October 14, spot Bitcoin ETFs recorded their highest daily inflow in four months, bringing in a combined $555.9 million.
This followed Bitcoin’s recent price increase, which reached a two-week high of $66,500 on the same day.
Nate Geraci, president of ETF Store, described this as a “monster day” for the sector and told that the inflows greatly exceeded pre-launch expectations.
He attributed this strong performance to growing interest from financial advisers and institutional investors rather than speculative retail traders.
Issues with Ethereum ETFs
While Bitcoin ETFs are experiencing an impressive growth, Ethereum ETFs have seen more modest activity recently.
On Monday, firms like Bitwise, VanEck, Franklin, and Grayscale reported no inflows at all, while Fidelity and Invesco saw only minor flows.
Overall, digital asset investment products had a substantial surge last week with inflows reaching $407 million, driven mainly by investor sentiment surrounding the upcoming U.S. elections.
