Asset Manager Monochrome Applies for Ethereum ETF Listing on Cboe Australia

Highlights:

• Monochrome applies for its Ethereum ETF to broaden regulated crypto options in Australia.
• The IETH fund will allow investors to use cash or in-kind transactions.
• The decision on IETH’s listing is anticipated by the end of the month.

In partnership with Vasco Trustees Limited, Australian digital asset management firm Monochrome Asset Management has officially applied to list Monochrome Ethereum (ETH) exchange-traded fund (ETF) on Cboe Australia. In a Thursday press release, the company said it expects a decision by the end of the month.

Monochrome’s proposed product, designed to passively hold Ethereum (ETH), seeks to provide retail investors with a regulated way to invest in the world’s second-largest cryptocurrency by market capitalization. If approved, the ETF will be listed under the IETH ticker, according to the firm.

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

The launch of IETH will broaden the range of regulated crypto investment options available to Australian investors. It will follow the earlier introduction of the platform’s flagship product, the Monochrome Bitcoin ETF (IBTC), the first in Australia to hold Bitcoin directly. The IBTC fund has attracted considerable attention, with Bitcoin holdings valued at around $11.3 million as of September 4, according to an update on Monochrome’s website.

The IETH fund is designed to offer investors dual access, permitting transactions in both cash and in-kind. This flexibility is intended to simplify the process of investors purchasing funds using various methods. Monochrome has also confirmed that, if approved, IETH will be accessible through major Australian brokerage platforms, enhancing its availability to retail investors nationwide. While Monochrome awaits the decision on its application, global crypto funds continue to encounter challenges.

The company’s official statement reads:

“Subject to quoting approval, Monochrome expects IETH to be quoted on Cboe Australia towards the end of September 2024 and will be available on major brokerage platforms.”

Australia’s Crypto Market Growth Faces Rising Regulatory Scrutiny

The crypto market in Australia has experienced substantial growth in ownership and adoption over recent years. Currently, the rate of crypto ownership in Australia stands at 17%, surpassing the global average of 15%. However, it’s important to note that cryptocurrency has faced growing scrutiny in Australia.

In May of 2023, Binance Australia informed customers that they would lose the ability to make Australian dollar deposits and withdrawals due to a decision by its third-party service provider. Moreover, in October, the Australian government introduced a proposal to apply the same regulations to digital asset platforms as other financial service providers.

US Spot Bitcoin and Ethereum ETFs Continue to Bleed

Spot Bitcoin ETFs in the US experienced $37.2 million in outflows on Wednesday, marking six consecutive days of negative flows. Farside Investors revealed that Grayscale’s GBTC, the second-largest spot Bitcoin ETF by net assets, led with $34.2 million in outflows.

🚨 US #ETF 03 SEP: 🔴$37M to $BTC and 🔴$38M to $ETH

🌟 BTC ETF UPDATE (final): -$37M

• The net flow has been negative for 6 consecutive trading days.

• Only #Bitwise (BITB) saw an inflow yesterday but the volume was small.

🌟 ETH ETF UPDATE (final): -$38M

• The net flow… pic.twitter.com/dgEwDTk8JO

— Spot On Chain (@spotonchain) September 5, 2024

Meanwhile, US spot Ethereum ETFs saw $37.5 million in net outflows, marking their second consecutive day of negative flows. Grayscale Ethereum Trust (ETHE) saw $40.6 million in outflows, while the Grayscale Ethereum Mini Trust gained $3.1 million in inflows. The remaining seven spot Ethereum ETFs had no flows on Wednesday. Total trading volume for the nine spot Ethereum ETFs dropped to $145.86 million from $163.5 million the previous day.