Monochrome Asset Management has lodged an application to quote the Monochrome Ethereum ETF (IETH) on Cboe Australia.
Monochrome said in a statement this week that subject to quoting approval, it expects IETH to be quoted on Cboe’s local exchange towards the end of September and to be available on major brokerage platforms.
“IETH will passively hold Ethereum, offering retail investors a unique, regulated opportunity to gain exposure to the second-largest crypto asset by market capitalisation,” the firm said.
The ETF will also be a dual-access fund, allowing cash and in-kind applications and redemptions for investors.
“The launch of the Monochrome Ethereum ETF will broaden the range of regulated crypto asset investment options available to Australian investors,” the firm said.
If Monochrome is successful, its product will become the second such product in the market, with Global X’s 21Shares Ethereum ETF (Cboe: EETH) already listed on Cboe.
The firm first mentioned its ambitions to list an Ethereum ETF when it launched the Monochrome Bitcoin ETF (IBTC) on Cboe in June.
In April, the firm, which initially submitted its application to the ASX in July 2023 with plans for a second quarter 2024 launch, announced it had decided to shift its focus to Cboe this year.
“We are excited to bring the Monochrome Bitcoin ETF (IBTC) to market. IBTC holds bitcoin directly – a first in Australia. This aligns with Monochrome’s investor protection-driven mission to offer secure, compliant, and straightforward pathways to participate in this transformative space,” Monochrome chief executive Jeff Yew said at the time.
And while bitcoin has enjoyed increased popularity in 2024 on the back of the Securities and Exchange Commission’s (SEC) vote of confidence earlier this year, Ethereum ETFs have failed to replicate the same momentum thus far.
Back in July, when spot Ethereum ETFs got the final tick of approval from the SEC, the occasion was described as a “noteworthy milestone”; however, what has ensued is significant price declines suggesting that this asset may have fallen out of favour.
The second largest cryptocurrency, which was trading at around US$3,478 on 23 July, the day of US SEC approval, is currently hovering below US$2,400.
This trend marks a significant departure from the experience had by bitcoin earlier this year, which saw its price soar over 30 per cent between January and March after the trading of spot bitcoin ETFs was approved.
“Whilst macro uncertainty is high and the regulatory conditions surrounding the Ethereum ecosystem remain uncertain, investors might just be waiting for clarity,” Ben Celermajer, co-chief investment officer at Magnet Capital, recently told InvestorDaily.
But Celermajer observed, the fog should clear heading towards the end of 2024, against the backdrop of rate cuts in the US and the impending election.
