Jeff Yew, CEO of Monochrome Asset Management, expressed confidence in the appeal of the Ether ETF to potential investors, particularly highlighting the ETF’s in-kind subscription model. This model allows investors to contribute either fiat or digital assets, a flexibility that could enhance its attractiveness. Yew noted a similar trend with the firm’s Bitcoin ETF, where significant growth was observed as investors transferred holdings from crypto exchanges to the ETF structure.
While Monochrome’s Bitcoin ETF, launched in June, reported over $7.6 million invested as of September 5, it has faced stiff competition from larger US-listed spot Bitcoin ETFs and other Australian counterparts. However, the Australian market’s relatively open regulatory stance towards crypto provides a fertile ground for such financial products, according to Yew. He suggested that the introduction of regulated ETFs serves as a crucial development for local investors previously limited to crypto exchange investments.
Yew is optimistic about the broader trajectory for ETFs in Australia, anticipating a significant market share due to the shift of crypto holdings from exchanges to regulated ETF structures. This transition not only marks a maturation of the investment landscape but also diversifies the avenues through which investors can engage with digital assets.
Comparison with Other Global ETFs
The introduction of the Ether ETF follows the successful launch of other crypto ETFs in Australia, like the VanEck Bitcoin ETF (VBTC), which has accrued over $26 million in assets. Internationally, prominent ETFs like BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund have attracted substantial investments, highlighting the growing global interest in crypto-based financial products.
| ETF Name | Location | Asset Under Management | Launch Date |
|---|---|---|---|
| Monochrome Bitcoin ETF | Australia | $7.6 million | June 2023 |
| VanEck Bitcoin ETF (VBTC) | Australia | $26 million | July 2023 |
| Global X 21 Shares Bitcoin ETF | International | $65 million | N/A |
| BlackRock iShares Bitcoin Trust | US | $20 billion | N/A |
| Fidelity Wise Origin Bitcoin Fund | US | $10 billion | N/A |
Monochrome Asset Management’s initiative to launch Australia’s first ETF directly holding Ether represents a significant development in the financial services industry, offering investors regulated exposure to digital assets. As the crypto market evolves, such products are likely to play a pivotal role in shaping investment strategies and broadening the accessibility of cryptocurrency investments.
As Monochrome awaits regulatory approval, the broader implications for the Australian financial market and global crypto investment landscape remain substantial, with potential shifts in how investors approach digital asset allocations.
Featured image credit: DALL-E by ChatGPT
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