Australia is joining the global spot ETF frenzy with Monochrome’s Ethereum ETF (IETH). Monochrome’s announcement comes two months after the company launched its Bitcoin ETF (IBTC), which has seen $10.1 million invested since August last year.
The product’s success primarily influenced the company’s foray into the U.S. ETF spot market.
Months after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs, the agency also got the green light on the Ether ETF, paving the way for broader institutional participation.
Although Spot Ether ETFs were poorly received immediately after launch, this did not dampen the spirit of the Monochrome team who wanted to introduce the same product to Australia.
Image: Monochrome Asset Management
Monochrome’s new product benefits from a reduction in tax obligations with an in-kind redemption. The company is counting on this additional functionality to generate excitement in the industry and drive demand.
Monochrome to launch first Ethereum ETF on Cboe Australia
Australian digital asset management company Monochrome is set to launch Australia’s first Ethereum (IETH) spot ETF, with trading commencing on Cboe Australia on Monday, according to Decrypt. Previously, Monochrome launched its…
– CoinNess Global (@CoinnessGL) October 14, 2024
Monochrome’s Ethereum ETF begins trading on October 14
Traders and institutional investors can expect to purchase and trade the fund starting Monday, October 14. The product will be listed and traded on Cboe Australia, which provides a platform for participants to trade a variety of asset classes and products.
According to Jeff Yew, CEO of Monochrome, the company’s Ether ETF differs from its American counterpart. This is the first Ether ETF in the world with redemption and subscriptions of Ether in kind. Yew further explains that Monochrome’s new product offers better tax efficiency to holders, which can boost demand.
What can you expect from the Monochrome Ethereum ETF?
This new product offers several useful features to local traders and investors. Monochrome’s Ethereum ETF is a dual-access fund, meaning investors can benefit from cash or in-kind applications and redemptions.
The unique fund structure allows an investor to transfer Ether into the ETF without changing the beneficial owner. In short, investors do not need to worry about additional costs associated with a change in ownership structure. The fund structure also gives the investor full rights to the allocated Ether.
Monochrome Ethereum ETF to compete with US funds
With its official launch this week, Monochrome’s Ethereum ETF now competes directly with US crypto funds and ETFs. Interested investors and traders can access the fund through popular Australian brokerage platforms and accept transfers using decentralized and cold wallets and crypto platforms. It comes with a management fee of 0.5%, which becomes 0.21% for an accredited advisor.
The monochrome rate is comparable to that of the United States, with rates ranging from 0.20 to 0.25%. To make its offerings more competitive, Monochrome has partnered with industry players like Gemini and BitGO for cryptocurrency custody.
Featured image from Pexels, chart from TradingView
