By the Sword Vol 1

From the ADV Manga edition

From the creator of Fake comes a melting pot of swordplay, monsters, and medieval magic! Long ago, a half-breed swordsmith forged the Moegi, a powerful and magical blade. The demon hunter Asagi has searched the land for this sword in hopes that it can handle his special force that otherwise destroys ordinary swords. Having encountered Kaede, a half-breed girl, Asagi finds himself within grasp of the Moegi, but there's only one problem - only the nephew of the spirit within the sword can pull it from its sheath! Will Asagi find the nephew and make the sword his?

Source: Anime News Network Encyclopedia