Monochrome Asset Management has taken a significant step by applying to list its new Ethereum exchange-traded fund (ETF) on Cboe Australia.

In a Thursday press release, the company announced it anticipates a decision before the end of the month.

The proposed Ethereum ETF, which would trade under the ticker IETH, aims to provide retail investors with a regulated avenue to gain exposure to Ethereum (ETH), the world's second-largest cryptocurrency by market capitalization.

IETH to Become Addition to Australia's Crypto ETFs

If approved, the IETH fund will be a crucial addition to Australia's expanding range of regulated crypto investment products.

It will follow Monochrome's earlier launch of the Monochrome Bitcoin ETF (IBTC), the first in Australia to hold Bitcoin directly.

According to an update on Monochrome's website, the IBTC fund has attracted significant attention, with Bitcoin holdings valued at approximately $11.3 million as of September 4.

The IETH fund is designed to provide dual access for investors, allowing transactions in cash and in-kind. This flexibility aims to make it easier for investors to buy into the fund using different methods.

Monochrome has also confirmed that, upon approval, IETH will be available through major Australian brokerage platforms, increasing its accessibility to retail investors across the country.

Global Crypto Funds Face Challenges

As Monochrome awaits the outcome of its application, crypto funds globally continue to face challenges. In the U.S., spot Bitcoin ETFs have faced six consecutive days of net outflows, with $37.29 million leaving the products on Wednesday.

Grayscale's GBTC, the second-largest spot Bitcoin ETF, recorded the most significant outflows at $34.25 million, while Fidelity's FBTC and VanEck's HODL also saw substantial withdrawals. U.S. Ethereum ETFs have similarly experienced outflows.

The Grayscale Ethereum Trust (ETHE) recorded net outflows of $40.63 million on Wednesday, while the Grayscale Ethereum Mini Trust (ETH) reported inflows of $3.12 million. Trading volume across the nine Ethereum ETFs declined to $145.86 million, down from $163.5 million the previous day.

Australia's Crypto Market Sees Continued Growth

Australia's crypto market has seen significant ownership and adoption growth over the past few years.

As reported, the crypto ownership rate in Australia is 17%, which is higher than the global average of 15%. It is worth noting that crypto has been under increasing scrutiny in Australia.

In May last year, the cryptocurrency exchange Binance Australia told customers they would lose access to Australian dollar deposits and withdrawals due to a decision made by its third-party service provider.

In July, Australian Securities and Investments Commission (ASIC) officials even searched Binance Australia's offices.

In October, the Australian government also unveiled a proposal to subject digital asset platforms to the same laws that govern other financial services providers. This move aims to bring more regulatory clarity and security for crypto investors.