Monochrome Asset Management will list Australia’s first spot Ether ETF on the Cboe
Monochrome Asset Management is planning to unveil the country’s first-ever spot Ethereum ETF, dubbed IETH. The trading will be launched on the Australia Cboe exchange from this Monday. It has been hailed as a major move for crypto investors in Australia.
Private Launch Event in Sydney
Last week, the company held an exclusive event in Sydney to make the official announcement of IETH. The attendees included Monochrome’s service providers, team, and key partners participating in the event.
Success of Monochrome’s Bitcoin ETF
This isn’t the first Monochrome foray into crypto ETFs. In June, the company launched Australia’s first spot Bitcoin ETF, IBTC, under new crypto licensing rules. The IBTC product provided investors in Australia with exposure to Bitcoin in a manner that was both regulated and compliant with the rules put forward under the Australian Financial Services Licensing regime.
Dual-Access Feature and Tax Benefits
What really sets Monochrome’s IETH apart, however, is the dual-access fund structure. Investors can apply for and redeem both cash and in-kind contributions, making it a little more flexible. According to Monochrome CEO Jeff Yew, this structure operates under a ‘bare trust’ that would allow investors to be treated as if they directly own the Ethereum; thus, there is a potential for tax benefits through avoiding capital gains tax.
A New Era for Australian Crypto Investors
Monochrome is increasing the scale of regulated crypto investment opportunities available to Australian residents by introducing the IETH. It will be a safer and regulated avenue for retail investors to get exposure to Ethereum, believed to be the second-largest cryptocurrency.
This is also not the first Ethereum ETF to be launched in the US, which has seen considerably lower demand than its spot Bitcoin ETF counterparts. But with a very different structure and a distinctly local approach, Monochrome hopes this will prove considerably more attractive to Australian investors.
