Monochrome to Launch Australia’s First Spot Ethereum ETF

Monochrome Asset Management is set to launch Australia’s first spot Ethereum exchange-traded fund(ETF) on Cboe. Monochrome’s IETH launch comes after the Bitcoin ETF (IBTC)’s launch in August 2023, which has since amassed $15 million (US$10.1 million).

This ETH ETF will start trading on Tuesday 10 AM AEDT, Monochrome’s Ethereum ETF (IETH) follows the launch of its Bitcoin ETF (IBTC) in August 2023, which has since garnered $15 million (US$10.1 million).

Available on most Australian brokerage platforms, this ETF supports transfers from crypto platforms, decentralized wallets, and cold wallets.

The ETF fund also marks first in the world to offer in-kind Ethereum subscriptions and redemptions and is meant to allow for greater tax efficiencies.

The fund includes a dual-access bare trust structure for preventing a capital gains tax event. It further allows long-term crypto investors to transfer Ethereum into the corresponding Monochrome ETF without modifying legal and beneficial titles.

Moreover, IETH will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant. It will have a management fee of 0.50%, reduced to 0.21% for accredited advisers.

CEO Jeff Yew shared more insights on the structure, “A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own Ethereum.”

BitGo and Gemini will provide custody services for IETH, and State Street Australia will be the fund administrator.