Monochrome Asset Management is set to introduce Australia’s first spot Ethereum exchange-traded fund (ETF), named IETH, which will begin trading on Monday on the Australia Cboe exchange. This launch follows the asset manager’s earlier success with the country’s first spot Bitcoin ETF and comes amid growing demand for regulated crypto investment options.
Private Event Announcement
Last week, Monochrome held a private event in Sydney, bringing together its service providers, team, and partners to announce the launch of IETH. This new offering provides Australians with regulated access to Ethereum, the second-largest cryptocurrency by market cap, via a compliant investment vehicle.
IETH’s Unique Structure
Unlike recent spot Ethereum ETFs launched in the U.S., Monochrome’s IETH offers a dual-access structure, allowing for both cash and in-kind applications and redemptions. According to a September announcement, this approach broadens the range of regulated crypto-asset investment options available to Australian investors.
Jeff Yew, CEO of Monochrome, emphasized the unique benefits of the ‘bare trust’ structure embedded in the IETH product, which could offer investors significant tax advantages. Yew explained, “A ‘bare trust’ allows your investment in the ETF to be treated as though you directly own the Ethereum, ensuring there is no capital gains tax as actions by the trustee are treated as those of the investor.”
Broader Impact
The launch of IETH follows Monochrome’s success in June with the introduction of IBTC, Australia’s first spot Bitcoin ETF, authorized under the country’s crypto licensing rules. By offering a regulated pathway for Australians to access Ethereum and Bitcoin, Monochrome continues to lead the charge in regulated crypto-asset investment options.
The new Ethereum ETF is expected to further expand the opportunities available to investors looking to gain secure and compliant exposure to digital assets in Australia. This product, filed alongside Vasco Trustees Limited, represents another step forward in Monochrome’s mission to offer innovative crypto solutions under the Australian Financial Services Licensing (AFSL) regime.
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