TThe First Ethereum ETF in Australia Launched on Cboe: What Does This Mean for Investors?

On October 15th, the first Ethereum (ETH)-based ETF in Australia was listed on the Cboe Australia stock exchange. This new product, called the Monochrome Ethereum ETF (IETH), was launched by Monochrome Asset Management, which directly invests in cryptocurrency. The initial capitalization of the fund amounted to $176,600, and the management fee is set at 0.5%.

This relatively high management fee stands in stark contrast to similar U.S. Bitcoin ETFs, where fees typically range between 0.12% and 0.25%. It's worth noting that Monochrome had previously launched a Bitcoin ETF, the Monochrome Bitcoin ETF (IBTC), which currently has a capitalization of $10.7 million. This figure fell short of the initial expectations set by the company's director, Jeff Yew, who had anticipated high demand for cryptocurrency derivatives.

Given the weak capital inflow into Monochrome's Bitcoin ETF, it’s likely that the Monochrome Ethereum ETF will not attract significant investments either. Despite a 7% increase in ETH over the past month, the asset continues to trade within a narrowing triangle pattern. It is expected that Ethereum’s price will remain between $2,200 and $2,900 for the rest of the year.

Interestingly, as conservative approaches to Ethereum investments continue to dominate, other cryptocurrency projects are emerging, offering more aggressive and potentially profitable strategies for investors. One such project is WDL, a cryptocurrency launched by Windly Energy. WDL operates on the Ethereum network and stands out due to its focus on sustainable energy and green development. For those seeking alternative investments, WDL could present an attractive opportunity, especially in light of the instability surrounding traditional cryptocurrency funds and ETFs.