As a seasoned financial analyst with over two decades of experience under my belt, I must say that the launch of Monochrome Asset Management’s spot Ethereum exchange-traded fund (IETH) on the Cboe Australia is an exciting development in the rapidly evolving world of cryptocurrency. Having closely followed the journey of the Bitcoin ETF launched by the same firm earlier this year, I am intrigued by their approach and the potential impact this could have on retail investors in Australia.
On Tuesday, Monochrome Asset Management plans to debut Australia’s initial spot Ethereum exchange-traded fund.
Starting next Tuesday, October 15, the Ethereum-based Exchange Traded Fund (ETF), known as the Monochrome Ethereum ETF, will be introduced on the Cboe Australia. The trading symbol for this ETF will be IETH in the market.
Following the August debut of Monochrome’s Bitcoin (BTC) ETF (symbol IBTC), my research team and I decided to take a similar path a few months later. The IBTC ETF, as we learned, initially held approximately 167 Bitcoin, translating to an approximate value of AUD 15 million at the time of launch.
In early September, Monochrome, along with its associate Vasco Trustees Limited, submitted a request for listing the ETHEREUM (IETH) on the Cboe Australia. They mentioned in their statement that this exchange-traded fund (ETF) will be designed to passively hold Ether.
This implies that the product provides a controlled path for ordinary investors to acquire a stake in Ether, the globally recognized second-largest digital currency with a market cap surpassing $316 billion at present.
The IETH fund offers a unique feature: it supports both selling for cash and exchanging for the underlying asset, Ether. This flexibility gives investors the option to purchase and later redeem their ETF holdings using Ether itself. State Street Australia is appointed as the fund’s administrator, while BitGo and Gemini provide digital asset custody services to ensure secure storage of these assets.
In January 2024, the United States Securities and Exchange Commission granted approval for the first exchange-traded funds (ETFs) based on cryptocurrency spot markets. These approved funds would incorporate Bitcoin ETFs from BlackRock, Fidelity Investments, and Grayscale.
In May, the Securities and Exchange Commission (SEC) authorized trading of Ethereum ETFs, which officially began in July. Additionally, Hong Kong and Australia are some of the many nations that have given their approval for trading exchange-traded funds (ETFs) based on cryptocurrency spot markets.
Although the worth of investments in these funds from countries such as Australia is relatively low, there’s been a significant increase in interest for the U.S. market. As of October 11th, data from SoSoValue reveals that the total net assets in U.S.-listed Bitcoin spot ETFs amounted to $58.66 billion, while Ethereum had $6.74 billion.
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2024-10-15 04:38