Monochrome Asset Management is set to launch Australia’s first spot Ethereum exchange-traded fund (ETF) on Tuesday, October 15. The Ethereum ETF will debut on the Cboe Australia under the ticker IETH.

This launch follows the recent introduction of the Monochrome spot Bitcoin ETF (IBTC) in August, which holds approximately 167 Bitcoin, valued at AUD 15 million.

Introducing IETH: A New Investment Avenue

Monochrome and its partner Vasco Trustees Limited filed for the listing of IETH on the Cboe Australia in early September. The Ethereum ETF is designed to passively hold Ether, providing retail investors with a regulated means to gain exposure to the world’s second-largest cryptocurrency by market capitalization, which currently exceeds $316 billion.

Key Features of IETH

  • Dual-Access Fund: Allows both cash and in-kind redemptions, enabling investors to buy and cash out using Ether.
  • Regulated Exposure: Offers a secure and regulated method to invest in Ethereum.
  • Administrative Support: State Street Australia will act as the fund’s administrator.
  • Custody Services: Digital assets custody will be managed by BitGo and Gemini.

Global Approval of Spot Crypto ETFs

The U.S. Securities and Exchange Commission (SEC) approved the first spot crypto ETFs in the U.S. in January 2024. This included approvals for spot Bitcoin ETFs by major financial institutions such as BlackRock, Fidelity Investments, and Grayscale. Subsequently, the SEC approved spot Ethereum ETFs in May, with trading commencing in July. Other countries, including Hong Kong and Australia, have also approved spot crypto ETFs.

While the value of assets held in these funds in countries like Australia is relatively small, the U.S. market has experienced significant demand. As of October 11, data indicated that U.S.-listed spot Bitcoin ETFs hold total net assets worth $58.66 billion, and Ethereum ETFs hold $6.74 billion.

“IETH offers a regulated and accessible pathway for investors looking to gain exposure to Ethereum, enhancing the cryptocurrency investment landscape in Australia.”

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