Monochrome Files For Australian Ethereum ETF, The First In Direct Holding

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Australian asset management firm Monochrome has filed to list the Ethereum exchange-traded fund (ETF) through a partnership with Vasco Trustees Limited.

The application indicated that Monochrome chose CBOE Australia as the exchange platform for the product list. Monochrome touts itself as the first Australian entity to hold Ether directly, and it hopes to secure approval by the end of September.

Monochrome Files For A Spot Ethereum ETF Under Ticker IETH

As disclosed in a Thursday press release, Monochrome Asset Management has filed for a spot Ethereum exchange-traded fund (ETF) in Australia. 

In its statement, the asset manager said it plans to list the ETH ETF on Cboe Australia and expressed optimism about getting approval before the end of this month.

Monochrome has lodged an application to quote the Monochrome Ethereum ETF under the ticker $IETH on Cboe Australia, offering retail investors regulated access to Ethereum.

Quotation expected by the end of this September.

Read more🔗https://t.co/p2jlkeYDQx

— Monochrome (@MonochromeAsset) September 5, 2024

Further, Monochrome noted that its ETH ETF will hold Ethereum passively, allowing retail investors to engage in Ether investments in a regulated market.

Additionally, the company indicated that its ETH ETF, if approved, will be listed under the ticker IETH. Moreover, the launch of the ETF will extend the range of regulated crypto investment options for investors in Australia. 

According to Mononchrome, IETH will function as a dual-access fund for investors. This means the investors will enjoy cash and in-kind applications and redemptions with the product.

Monochrome Asset Management CEO Jeff Yew highlights some key elements that will drive the adoption of IETH. Yew explained the benefits of the product’s in-kind subscription model, noting that it offers investors the privilege of investing with fiat or other popular digital assets. 

Notably, the advent of IETH will follow Monochrome’s spot Bitcoin ETF (IBTC) launched in June this year.

Spot ETF Trend In Australia Compared To The US

Monochrome’s move for ETH ETF comes amid the struggles of similar products in the US. Yew pointed out that Australia offers a “less restrictive” regulatory approach to crypto compared to the US and other countries. 

The CEO noted that ETFs are great alternatives in the Australian market, where investors can participate in a fully regulated product even as first-timers. 

He acknowledged that the market is filled with many crypto products and dozens of exchanges offering crypto-related investments. However, the recent trend in the industry indicates that ETFs have become the main focus.

Based on its regulatory clarity, Australia has emerged as a reliable and crypto-friendly hub for many projects and entities.

Yew stated: “Australia is on a very different trajectory with ETFs to the rest of the world.”

Monochrome’s Bitcoin ETF, IBTC, is the first approved ETF in Australia under the 2021 Australian Financial Services License (AFSL). According to Monochrome’s website, as of September 4, IBTC had assets worth about AU$11.4 million ($7.6 million).

Meanwhile, VanEck’s Australia-based Bitcoin ETF (VBTC) has performed impressively since its launch on July 13 this year. VBTC offers investors exposure to VanEck’s Bitcoin Trust. So far, VBTC has accumulated over AU$40 million, equivalent to $26 million.