On Tuesday, Australia introduced its first-ever Ethereum ETF

TLDR

Australia's First Space Ethereum ETF Launches Tuesday Monochrome will launch an ETF following their Bitcoin ETF in August. The ETF allows both cash and in-kind redemption. It starts at 10:00 local time on IETH. This position follows the trend. Crypto ETFs are launched globally

Australian crypto investment firm Monochrome is set to launch the country's first-ever Ethereum exchange-traded fund (ETF) on Tuesday, October 15, 2024.

This new investment vehicle, dubbed the Monochrome Ethereum ETF (IETH), will launch at 10:00 local time, marking a major milestone in Australia's cryptocurrency investment landscape.

This launch comes on the heels of Monochrome's successful launch of a Bitcoin ETF in August. As of October 10, the Bitcoin ETF holds 165 bitcoins worth more than $10 million.

The new Ethereum ETF aims to provide investors with similar exposure to the second largest cryptocurrency by market capitalization.

One notable feature of the Monochrome Ethereum ETF is its flexibility in terms of investment and redemption. Just like crypto ETFs in Hong Kong, IETH allows applications and redemptions in cash and in kind.

This means that investors can buy and withdraw their funds using traditional currencies or Ethereum, providing more versatility to different investors.

The introduction of this ETF in Australia follows the global trend of countries approving and launching spot cryptocurrency ETFs.

This movement gained momentum after the United States approved the first Bitcoin ETF in January 2024. Several countries have since followed suit, although the amount of these funds outside the United States is very small.

For context, as of October 10, the Hong Kong spot Bitcoin and Ethereum ETFs held $262.97 million and $35.07 million in net assets, respectively.

By comparison, US-listed ETFs hold $58.66 billion worth of Bitcoin and $6.74 billion worth of Ethereum, according to data from Soso Value. These figures highlight the strong leadership that US crypto ETFs maintain in terms of assets under management.

The launch of Australia's first Ethereum ETF comes as other countries consider similar moves.

For example, recent reports suggest that South Korea's Financial Services Commission is considering allowing crypto ETFs, reflecting growing global interest in regulated cryptocurrency investment products.

The introduction of spot crypto ETFs in various markets aims to provide investors with a regulated and secure way to gain exposure to digital assets.

These investment vehicles allow individuals and institutions to invest in cryptocurrencies without having to directly own or manage the underlying assets, which are technically challenging and come with security risks.

For Monochrome, the launch of the Ethereum ETF represents an expansion of their crypto investment offerings.

The company has already established a presence in the market with its Bitcoin ETF, and this new product will allow investors to meet the interest in Ethereum, which has received a lot of attention due to its smart contract capabilities and its role in the decentralized finance (DeFi) ecosystem. .