Monochrome Asset Management is set to launch Australia’s first spot Ethereum exchange-traded fund on Tuesday.

The Ethereum (ETH) ETF will debut on the Cboe Australia, bringing the Monochrome Ethereum ETF with the ticker IETH to the market on Tuesday, Oct. 15.

IETH launches a few months after Monochrome unveiled its spot Bitcoin (BTC) ETF, which launched in August. The Monochrome Bitcoin ETF (IBTC) held about 167 Bitcoin, worth AUD 15 million.

Monochrome and its partner Vasco Trustees Limited filed an application for the listing of IETH on the Cboe Australia in early September, noting in an announcement that the spot Ethereum ETF would passively hold Ether.

That means the product would offer retail investors a regulated avenue to gain exposure to Ether, the world’s second-largest cryptocurrency by market capitalization, currently over $316 billion.

IETH is a dual-access fund, allowing for both cash and in-kind redemptions. For investors, this means the ability to buy and cash out of the ETF with the underlying asset, Ether. Meanwhile, State Street Australia will serve as the fund’s administrator. Digital assets custody provider BitGo and crypto exchange Gemini are the fund’s custody services providers.

The U.S. Securities and Exchange Commission approved the first spot crypto ETFs in the U.S. in January 2024, giving the nod to funds that include spot Bitcoin ETFs by BlackRock, Fidelity Investments, and Grayscale.

The SEC went on to approve spot Ethereum ETFs in May, with trading going live in July. Hong Kong and Australia are among several countries to greenlight spot crypto ETFs.

However, while the value of assets held in these funds in countries like Australia is small, the U.S. market has seen a notable rise in demand. Data from ETF tracking site SoSoValue shows the total net assets in U.S.-listed spot Bitcoin ETFs as of Oct. 11 was $58.66 billion. Ethereum had $6.74 billion.

Spot Bitcoin exchange-traded funds in the U.S. recorded outflows of over $300 million this week as global macroeconomic events sparked uncertainty over short-term direction.

After closing the historically bearish September with over $1.1 billion in inflows, roughly $388.4 million moved out of the 12-spot Bitcoin ETF funds between Oct. 1 and Oct. 3 coinciding with the escalating Iran-Israel conflict, which pushed Bitcoin’s price to a weekly low of $60,047.

On Oct. 4, better-than-expected U.S. payroll data brought some relief to the market, allowing Bitcoin to reclaim the $62,000 level, while ETF products saw $25.59 million in inflows. 

However, this recovery wasn’t enough to fully offset the impact of the three-day outflow streak. 

Since Sept. 13, three consecutive weeks of inflows brought in about $1.91 billion into spot Bitcoin ETFs, but this week’s outflows caused these funds to end the first week of October in negative territory, with $301.54 million flowing out, according to SoSoValue data.

Underlining the last trading day’s activity, Bitwise’s BITB saw the most inflows, while seven out of the twelve Bitcoin ETF products, including BlackRock’s IBIT, saw no movement.

• Bitwise’s BITB led with inflows of $15.29 million.
• Fidelity’s FBTC, $13.63 million.
• ARK and 21Shares’ ARKB saw its first inflow this week, bringing in $5.29 million.
• VanEck’s BTCW, $5.29 million.
• Grayscale’s GBTC recorded outflows of $13.91.

Analysts point to key levels

Besides the ETF market, some selling pressure also came from Bitcoin miners, who, according to crypto analyst Ali, have offloaded approximately $143 million worth of Bitcoin (BTC) since Sept. 29. See below:

The selling activity could intensify, according to Ali, who pointed out in a subsequent X post that Bitcoin had been trading below the short-term holders’ realized price, which currently stands at $63,000.

This price represents the average cost at which short-term investors acquired their Bitcoin, and when the market dips below it, these holders are more inclined to sell in an attempt to minimize losses—risking a “cascading sell-off” that could exert further selling pressure.

As such, Ali advised investors to watch the $63,000 mark as the next key level that BTC needs to conquer to avoid further losses.

On the other hand, Crypto analyst Immortal pointed to a slightly higher short-term target of $64,000, adding that if the flagship cryptocurrency manages to break above this key resistance level, it could signal the beginning of a strong bullish move.

However, on a longer time frame, experts remain optimistic, citing Bitcoin’s historical Q4 performance and expectations of U.S. rate cuts, which could drive prices toward the $72,000 range despite short-term volatility.

At the time of writing, Bitcoin was hovering just above $62,200, marking a drop of over 5% in the past week.

Meanwhile, market sentiment appears to be picking up, with the Fear and Greed Index nudging back to a neutral 49, up from a more cautious 41 the previous day, per data from Alternative. 

$4.5 billion crypto asset manager Bitwise is filing for its second crypto exchange-traded fund (ETF) this week.

According to the U.S. Securities and Exchange Commission (SEC), Bitwise filed a Form N-1A for a new product called the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC) earlier today.

A Form N-1A is a required registration form for management companies.

This is the second ETF filing that Bitwise has made with the SEC this week.

On Wednesday morning, Bitwise submitted an S-1 registration statement to the SEC for a spot XRP ETF tracking the price movements of XRP, according to a report.

Bitwise has already successfully launched ETFs in the United States for Bitcoin (BTC) and Ethereum (ETH).

According to today’s filing, BITC will be a novel type of ETF product aiming to capitalize on the potential upside of Bitcoin while also mitigating downside risks by rotating into U.S. Treasuries when Bitcoin’s volatile price consolidates.

Per a press release from Bitwise, the filing is part of a larger movement to convert three futures-based ETFs into trendwise strategy investment vehicles.

“The conversion is expected to take place on or around December 3, 2024. The funds will change their names and strategies as follows:

BITC: The Bitwise Bitcoin Strategy Optimum Roll ETF will convert to the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF

AETH: The Bitwise Ethereum Strategy ETF will convert to the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF

BTOP: The Bitwise Bitcoin and Ether Equal Weight Strategy ETF will convert to the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DreamStudio