Monochrome Asset Management, based in Australia, is set to launch the country’s first spot Ethereum exchange-traded fund (ETF) called IETH. The product will start trading on the Australia Cboe exchange on Monday. The launch event for IETH took place in Sydney last week, where Monochrome’s service providers, team, and partners participated. This development comes after the launch of a similar product in the US three months ago, although spot Ethereum ETFs have not garnered the same level of demand as spot Bitcoin ETFs.
In addition to the Ethereum ETF, Monochrome had previously launched Australia’s first Bitcoin ETF in June under crypto licensing regulations. With the ticker IBTC, this product offered Australians a regulated and compliant way to invest in Bitcoin. The spot Bitcoin ETF is authorized under a specific crypto licensing category within the Australian Financial Services Licensing (AFSL) regime. Monochrome’s IETH ETF introduces a unique feature as a dual-access fund, enabling both cash and in-kind applications and redemptions for investors, enhancing the regulated investment options available to Australian investors.
The launch of the Monochrome Ethereum ETF provides retail investors in Australia with a regulated means to gain exposure to Ethereum, the second-largest cryptocurrency by market capitalization. Monochrome CEO Jeff Yew highlighted the tax advantages of the dual-access ‘bare trust’ feature of the IETH ETF, noting that investors may be treated as if they own the Ethereum directly. This setup allows investors absolute entitlement to their allocated Ethereum, and trustees’ actions are considered those of investors, potentially reducing capital gains taxes for investors. Monochrome aims to differentiate itself from its US counterparts with this innovative structure.
Monochrome filed for the IETH product in September, in partnership with Responsible Entity Vasco Trustees Limited. This move underscores the growing interest in regulated crypto asset investment options in Australia, as Monochrome continues to expand its product offerings in the country’s ETF market. The addition of the spot Ethereum ETF to Monochrome’s lineup further diversifies the investment options available to Australian investors, providing them with access to the rapidly evolving cryptocurrency market. With the launch of IETH, Monochrome continues to demonstrate its commitment to providing innovative and compliant investment solutions in the digital asset space.
As the market for cryptocurrency ETFs continues to evolve, Monochrome’s introduction of the first spot Ethereum ETF in Australia marks a significant milestone. This development reflects the increasing acceptance and demand for regulated crypto investment products among investors in the country. By offering a unique dual-access fund structure, Monochrome aims to provide investors with a tax-efficient and compliant way to gain exposure to Ethereum, positioning itself as a leader in the country’s ETF market. With the successful launch of IETH, Monochrome is poised to further strengthen its position as a key player in the Australian crypto asset management industry.
In conclusion, Monochrome’s introduction of the first spot Ethereum ETF in Australia represents a significant advancement in the country’s crypto investment landscape. By expanding their product offerings to include Ethereum, alongside their existing Bitcoin ETF, Monochrome is catering to the growing demand for regulated crypto investment options in the country. With a focus on innovation and compliance, Monochrome continues to pave the way for retail investors in Australia to access the digital asset market in a secure and regulated manner. The launch of IETH is a testament to Monochrome’s commitment to providing cutting-edge investment solutions and further establishes their position as a leading asset manager in the Australian ETF space.
