Monochrome Ethereum ETF (IETH) Begins Trading in Australia

• Monochrome’s Ethereum ETF allows direct ETH transfers from wallets with no capital gains tax and no transfer fees.
• IETH raised AUD 272,900 ($183,400) in assets on its first day, offering Australian investors regulated Ethereum access.
• The fund charges a 0.5% management fee and uses BitGo and Gemini for secure digital asset custody.

Monochrome launched its first spot Ethereum (ETH) exchange-traded fund (ETF), an essential milestone in the increasing Australian market. The Monochrome Ethereum ETF, with the Australian trading symbol ‘IETH,’ gives investors exposure to Ethereum through a dual access mechanism. This feature allows investors to transfer Ethereum from cryptocurrency exchanges, decentralized wallets, and cold storage directly into the fund.

Portfolio Transfer with No Capital Gains Tax

The IETH fund allows users to transfer Ethereum and Bitcoin directly into the ETF with no transfer fees. Additionally, there are no capital gains tax (CGT) implications for these transfers and no change in beneficial ownership. This sets IETH apart from its global counterparts, streamlining the investment process for Australian investors. Furthermore, Monochrome’s Bitcoin ETF, IBTC, which operates under a similar structure, has already seen positive reception since its launch.

Monochrome’s IETH ETF charges a management fee of 0.5%, positioning it competitively within the market. The fund uses BitGo and Gemini as custodians, providing secure storage of digital assets. Besides its launch on Cboe Australia, IETH will be available on various Australian brokerage platforms, making it easier for local investors to gain Ethereum exposure.

IETH’s First Trading Day in Australia

On its first trading day, IETH reached AUD 272,900 in net assets, approximately $183,400. Although this initial figure may seem modest compared to Bitcoin ETFs in the U.S. and Hong Kong, it signals growing institutional acceptance of Ethereum in Australia. This follows the recent introduction of the Monochrome Bitcoin ETF, which currently holds about $10 million in net assets, while VanEck’s Bitcoin ETF on the ASX exchange has accumulated over $30 million.

This move is the latest in Australia, continually opening up possibilities for investing in cryptocurrencies, such as with the Monochrome Ethereum ETF. These ETFs successfully imply the growing trust in cryptos, opening up more avenues for investor interactions with cryptos in a regulated manner.