Monochrome Asset Management to Launch Australia’s First Spot Ethereum ETF
Monochrome Asset Management is gearing up to launch Australia’s first spot Ethereum exchange-traded fund (ETF) on Cboe. Following the successful launch of the Bitcoin ETF (IBTC) in August 2023, which has accumulated $15 million (US$10.1 million), Monochrome is ready to introduce the Ethereum ETF (IETH).
Launching Details
The Ethereum ETF (IETH) is scheduled to start trading on Tuesday at 10 AM AEDT. The launch of this ETH ETF follows closely behind the Bitcoin ETF (IBTC), which has seen significant success since its inception in August 2023.
Accessible on most Australian brokerage platforms, the IETH ETF will support transfers from various crypto platforms, decentralized wallets, and cold wallets.
Unique Features of the IETH ETF
The Ethereum ETF by Monochrome Asset Management boasts several unique features that set it apart from traditional ETF offerings:
- It is the first ETF in the world to offer in-kind Ethereum subscriptions and redemptions, providing greater tax efficiencies for investors.
- The fund includes a dual-access bare trust structure to prevent capital gains tax events, enabling long-term crypto investors to transfer Ethereum into the ETF without altering legal and beneficial titles.
- IETH will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant and carry a management fee of 0.50%, with a reduced rate of 0.21% for accredited advisers.
CEO Jeff Yew elaborated on the structure, stating, "A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own Ethereum."
Providing custody services for the IETH ETF will be trusted industry names BitGo and Gemini, while State Street Australia will serve as the fund administrator.
Industry Impact
The introduction of Australia’s first spot Ethereum ETF marks a significant development in the cryptocurrency and ETF space. With the success of the Bitcoin ETF paving the way for innovative offerings like the IETH, investors now have more options to diversify their portfolios and engage with the burgeoning crypto market.
Stay tuned for more updates on the launch and performance of Monochrome Asset Management’s Ethereum ETF as it enters the trading market.
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