Australia's First Ethereum ETF Imminent: Monochrome ConfidentAustralian asset management firm Monochrome Asset Management is confident in its application for a spot Ethereum Exchange Traded Fund (ETF), which is poised to become the first ETF in Australia to directly hold Ethereum. The company announced on September 5th that it had submitted a listing application for the Monochrome Ether ETF (IETH) to Cboe Australia, with plans to complete the listing by the end of the month
Australia's First Ethereum ETF Imminent: Monochrome Confident
Australian asset management firm Monochrome Asset Management is confident in its application for a spot Ethereum Exchange Traded Fund (ETF), which is poised to become the first ETF in Australia to directly hold Ethereum. The company announced on September 5th that it had submitted a listing application for the Monochrome Ether ETF (IETH) to Cboe Australia, with plans to complete the listing by the end of the month.
Monochrome Asset Management CEO Jeff Yew, in an interview with Cointelegraph, expressed his expectation that the Ether ETF will spark significant market interest, highlighting several key factors that will contribute to its success. Yew believes that the ETF's physical subscription model, allowing investors to choose between fiat currency or other digital assets for investment, will resonate with investors.
"We're beginning to see an interesting trend with Bitcoin ETFs," Yew stated. "People are moving their custody points away from crypto exchanges to ETFs, and that's actually our fastest-growing area." According to the latest data on Monochrome's website, as of September 5th, its Bitcoin ETF has attracted over $7.6 million (A$11.4 million) in investment. While this figure pales in comparison to spot Bitcoin ETFs listed in the United States and some of its Australian competitors, Monochrome's Bitcoin ETF has attracted over $7.4 million since its launch in June.
Notably, Yew pointed out that Australia has less restrictions in terms of crypto compared to other countries, making ETFs a breakthrough for the market, enabling investors to invest in fully regulated products for the first time.
There have been dozens of crypto exchanges serving retail and some institutional investors for nearly a decade, so theres already a significant amount of investment in crypto assets, Yew explained. Now, increasingly, crypto assets that were previously held on exchanges are being moved into standard structures such as ETFs.
Overall, Yew believes that due to this trend, Australias ETF development path is quite different from the rest of the world, and theres a much bigger market to develop.
In addition to Monochrome's Ethereum ETF, other cryptocurrency ETF products exist in the Australian market. The VanEck Bitcoin ETF (VBTC) launched on July 13th, providing Bitcoin exposure through investment in VanEck's Bitcoin Trust. It has performed better in terms of net holdings, currently boasting over $26 million (A$40 million) in holdings. The GlobalX 21Shares Bitcoin ETF invests in physical Bitcoin and has assets under management exceeding $65 million (A$98 million).
By comparison, among the top four Bitcoin ETFs in the United States, BlackRock's iShares Bitcoin Trust (IBIT) takes the lead, having attracted over $20 billion in inflows to date. Fidelity Wise Origin Bitcoin Fund (FBTC) has witnessed inflows nearing $10 billion. ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB) have both experienced approximately $2 billion in net inflows to date.
Monochrome Asset Management's Bitcoin ETF, launched in June, was Australia's first spot cryptocurrency ETF approved under the 2021 Australian Financial Services License (AFSL).
The news of Monochrome's Ethereum ETF launch will undoubtedly further drive the growth of Australia's cryptocurrency market and provide investors with more investment options.
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