Monochrome Asset Management to Launch Australia's First Ethereum ETF
Monochrome Asset Management is set to introduce Australia's first spot Ethereum Exchange-traded fund on Cboe, following the asset's approval in the U.S. Market. The ETF, named IETH, will commence trading on Monday at 10 AM AEDT, expanding Monochrome's ETF offerings after the successful launch of its Bitcoin ETF (IBTC) in August 2023, which has attracted $15 million (US$10.1 million) in Investments.
The IETH is positioning itself as the world's first to provide in-kind Ethereum subscriptions and redemptions, a feature aimed at enhancing Tax efficiencies for investors. According to Monochrome's CEO Jeff Yew, the dual-access bare trust structure is designed to prevent capital gains tax events by allowing investors to transfer Ethereum into the fund without triggering changes in Legal or beneficial Ownership.
Unique Features of Monochrome's Ethereum ETF
- Offers in-kind Ethereum subscriptions and redemptions
- Designed to avoid capital gains tax events
- Provides absolute entitlement to allocated Ethereum for investors
- Actions by the trustee treated as actions of the investor
The U.S. recently approved several spot ETFs for Bitcoin and Ethereum, attracting billions of dollars in Investments. Monochrome acknowledges that the Australian market may not match these levels but aims to capitalize on increasing investor interest. Unlike U.S. Crypto ETFs, IETH allows in-kind support and operates in the Asia-Pacific timezone.
IETH will track the CME CF Ether-Dollar Reference Rate - Asia Pacific Variant, with a management fee of 0.50% (0.21% for accredited advisers), aligning it with U.S. competitors. The ETF will be accessible on various Australian brokerage Platforms, supporting transfers from Crypto Platforms, Decentralized Wallets, and cold wallets.
BitGo, a Crypto financial services firm, and Gemini, a Crypto exchange operator, will provide custody services for IETH, while State Street Australia will act as the fund administrator, ensuring secure handling of assets and transactions.
Benefits of Monochrome's Ethereum ETF
- Competitive management fee structure
- Access on popular Australian brokerage platforms
- Secure custody services by trusted firms
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