Monochrome asset management launched australia's first ETF that directly holds ether.

Monochrome Asset Management has officially launched Australia's first exchange-traded fund (ETF) that directly holds Ether, the Monochrome Ethereum ETF (IETH). This innovative fund made its debut on the Cboe Australia equities exchange on October 15, and by 2:00 PM local time, it had amassed total net assets of approximately $176,600.

The IETH offers a management fee of 0.50% and allows for both in-kind applications and redemptions, enabling transactions in either cash or Ether. This flexibility is a notable feature, making it the only dual-access spot Ether ETF available in Australia. The fund is backed by crypto custodians BitGo and Gemini, ensuring secure management of the underlying Ether assets, while State Street Australia serves as the fund administrator​.

The launch of the IETH follows the successful introduction of Monochrome's Monochrome Bitcoin ETF (IBTC) in June, which has already attracted nearly $10.7 million (16 million Australian dollars) in assets​

Jeff Yew, CEO of Monochrome Asset Management, highlighted in a recent interview with Cointelegraph that a significant portion of the growth for the Bitcoin ETF resulted from clients transferring their cryptocurrencies from exchanges into the fund. He expressed optimism regarding the potential for spot crypto ETFs in the Australian market, emphasizing its unique growth trajectory compared to other regions, which may suggest a greater appetite for regulated cryptocurrency investment options​.

In the broader Australian market, VanEck launched the first spot Bitcoin ETF in June, which currently holds around $35 million (52 million Australian dollars) in assets​

In contrast, the United States leads the global market for crypto ETFs, with 11 spot Bitcoin funds managing a cumulative $19.3 billion in assets as of this year. This stark difference highlights the more established and robust landscape for cryptocurrency investment in the U.S. compared to Australia​.

Recent data from Farside Investors indicated that October 14 was a significant day for inflows into ETFs, with a combined net inflow of $556 million​

This surge in inflows reflects a growing interest among investors in cryptocurrency ETFs, suggesting that more individuals and institutions are seeking regulated avenues for crypto investments. The positive momentum in ETF inflows could further pave the way for broader acceptance and integration of cryptocurrencies within traditional financial markets