Monochrome Asset Management’s Ethereum ETF (IETH) is due to launch on Cboe Australia today (Tuesday, 15 October), after the firm revealed last month it was waiting for quoting approval to bring its latest crypto product to the market.
In a statement confirming the launch, the firm said IETH offers Australian investors exposure to Ethereum through a direct holding ETF structure.
The launch of the Monochrome Ethereum ETF broadens the range of regulated crypto asset investment options available to Australian investors.
The IETH is the second Ethereum product in the market, with Global X’s 21Shares Ethereum ETF (Cboe: EETH) already listed on Cboe.
Monochrome launched its bitcoin ETF (IBTC) on Cboe in June. Its price has remained relatively steady, dropping from the initial $10.32 in early June to $8.95 at close on Friday.
According to recent research by Global X, cryptocurrency ETFs continue to be the best-performing ETFs over the past year, buoyed by a falling interest rate environment, higher risk appetite by investors and strong flows into bitcoin ETFs.
In fact, the standout performer among ETFs this year is the Global X 21Shares Bitcoin ETF, with gains topping 118 per cent.
Bitcoin and its ETF counterparts have seen a surge in popularity in 2024 following the Securities and Exchange Commission’s (SEC) vote of confidence earlier this year. While Ethereum ETFs also received similar backing from the SEC, they have yet to achieve the same momentum.
In July, when spot Ethereum ETFs received their final approval from the SEC, the occasion was hailed as a “noteworthy milestone”. However, the subsequent price declines suggest that this asset may have fallen out of favour.
On 23 July, the day of the SEC approval, Ethereum was trading at approximately US$3,478, but it is now hovering around US$2,444.98.
Last month, Ben Celermajer of Magnet Capital told InvestorDaily that the current macroeconomic uncertainty and unclear regulatory conditions surrounding Ethereum have left many investors in a holding pattern. “Investors might just be waiting for clarity,” he stated.
He added that as we move towards the end of 2024, the situation is likely to improve, especially with expected rate cuts in the US and the approaching election, which could bring more stability to the market.
