Monochrome’s proposed ETF is a timely intervention. It comes at a time when global interest in Ethereum has lifted up.
Monochrome Asset Management is set to build on the success it recorded in June when it launched the Monochrome Bitcoin ETF (IBTC). This follows after the firm recently shared that it is in talks with relevant authorities to have its official application to launch an Ethereum exchange-traded fund (ETF) approved. The details were shared in a recent press release, where Monochrome said it partnered with Vasco Trustees Limited to apply for the ETF.
Per the release, the proposed ETF, named the Monochrome Ethereum ETF, would trade under the ticker “IETH” on Cboe Australia. It is expected to receive a regulatory decision by the end of this month.
In June, Monochrome’s Bitcoin ETF became the first Australian ETF to offer direct exposure to Bitcoin. So now, the firm is looking to replicate the move with the Ethereum ETF. That is, by providing a similar opportunity for retail investors to invest in Ethereum through a regulated framework.
Monochrome Ethereum ETF to Offer Retail Investors Regulated Access to Asset
Unlike other unregulated ways of investing in crypto assets, the IETH fund will be a fully regulated product. According to Monochrome, the fund is designed to passively hold Ethereum and will also offer dual access. This means that it will allow both cash and in-kind transactions, thus making it accessible for different types of investors.
Overall, the fund aims to offer investors a safe way to invest in Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization. However, as much as Monochrome is focusing on safety or security, it is also keen on compliance.
Interestingly, the firm has put measures in place to ensure that the IETH fund will be widely available to Australian investors. Its 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.”
If that is the case, then the development is expected to open the doors for more traditional investors to come into the fold. Particularly, those who have been cautious about crypto investments due to the lack of regulatory oversight.
Notably, Monochrome’s proposed ETF is a timely intervention. It comes at a time when global interest in Ethereum has lifted up. Although there are many factors behind this surge in interest, the proposed ETF is, without doubt, seeking to take advantage of the moment to provide Australian investors with a regulated means to invest in the crypto asset.
For now, all eyes are on regulators as investors await their decision in the next few weeks.
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