Monochrome Launches 'World's First Ethereum ETF' on Cboe Australia
Monochrome Asset Management is launching Australia's first spot ETF #Ethereum (IETH) on Cboe, marking a new step forward for crypto investing in Australia. Following the success of its Bitcoin ETF (IBTC) launched in August 2023, which is now worth $15 million, Monochrome hopes to attract attention from Ethereum investors. The IETH fund, which will begin trading on Monday, will be the first fund to allow investors to subscribe and redeem $ETH directly, helping to minimize capital gains taxes.
According to CEO Jeff Yew, the fund's "bare trust" structure allows investors to maintain legal ownership of Ethereum without being taxed when transferring it into the ETF. This is different from the #ETF funds in the US, which do not support this form of direct conversion. Although the Australian market is smaller than the US, Monochrome believes that there is an increasing demand for crypto investment products in Australia. The IETH fund will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant, with a management fee of 0.50%, reducing to 0.21% for accredited advisors.
The fund will be available on most Australian brokerage platforms and support transfers from exchanges, decentralized wallets, and cold wallets. Partners such as #BitGo , #Gemini will provide custody services, while State Street Australia is the administrator. Monochrome expects the IETH fund to mark a development in the global crypto financial market.
