Monochrome Asset Management has submitted an application for the new Ethereum Exchange-Traded Fund (ETH ETF) to be listed in Cboe Australia.
The fund, under the ticker of IETH, seeks to offer the retail investor a regulated means of accessing Ethereum (ETH). Monochrome is waiting for the decision on the approval no later than the end of the month.
Monochrome’s Ethereum ETF Set for Brokerage Platforms
If it gets approval, the IETH ETF will be a major addition to the Australian-regulated crypto investment products. It will follow Monochrome’s earlier launch of the Monochrome Bitcoin ETF (IBTC). IBTC is the first in Australia to hold Bitcoin (BTC) directly.
Monochrome is going to increase accessibility since transactions are accepted both in cash and in-kind. This means that investors have several options.
Monochrome has announced that the IETH ETF will be listed on the major Australian brokerage platforms. This is expected to open up the fund to retail investors across the country, who would be able to easily invest. The ETF aims to provide investors with a safe and secure method of investing in Ethereum, which is currently the second most popular cryptocurrency in the market.
Australian Crypto Market Grows Despite Global Challenges
The IETH ETF is being launched at a time when crypto funds across the globe are facing difficult times. In the U.S., spot Bitcoin ETFs have recently recorded net outflows. Grayscale’s GBTC and other leading funds experiencing pronounced redemptions. This is evident with Ethereum ETFs in the U.S. too. ETH ETFs have also reported outflows similar to those of the broader market trends.
However, the Australian crypto market is still expanding despite the challenges facing the global market. As of now, 17% of Australians have stated that they have cryptocurrency, which is higher than 15% of the global population. Monochrome’s Ethereum ETF will help investors access the growing crypto asset class through a regulated product.
Monochrome’s Ethereum ETF Aligns with New Regulations
Although the number of crypto owners is increasing, the Australian authorities have also increased their control over cryptocurrencies. Recently, surveillance has been enhanced, especially for major exchanges such as Binance Australia. On 30 May 2023, Binance Australia announced that its customers could not deposit or withdraw Australian dollars due to a problem with one of its partners.
Also, Australian authorities have searched the Binance offices, which implies that more attention is paid to the exchange.
The Australian government has also developed new measures to regulate digital asset platforms to fall under the same legal framework as other financial services. Monochrome’s effort to bring in a regulated Ethereum ETF aligns with this legal landscape by providing a product that aligns with the changing legal framework.
Monochrome’s application for the IETH ETF indicates a growing demand for regulated and transparent crypto investments. If approved, this fund may greatly increase the chances of Australian retail investors investing in Ethereum.
