Australia is joining the global spot ETF craze thanks to Monochrome’s Ethereum ETF (IETH). Monochrome’s announcement comes two months after the company launched its Bitcoin ETF (IBTC), which boasts $10.1 million in investments since August last year.
The success of this product was largely driven by the company’s entry into the U.S. spot ETF market.
Months after the U.S. Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF, the agency has given approval for an ETF in Ether, paving the way for broader institutional participation.
Although the response to the spot Ether ETF was poor upon launch, this does not dampen the spirit of the Monochrome team to launch the same product in Australia.
Image: Monochrome Asset Management
Monochrome’s new product boasts a reduction in tax burden through spot redemption. The company hopes this additional feature will create excitement in the industry and increase demand.
Monochrome Launches First Ethereum ETF at Cboe Australia
Australian digital asset management company Monochrome will launch Australia’s first spot Ethereum ETF (IETH), with trading beginning on Cboe Australia on Monday, according to Decrypt. Previously Monochrome was…
— Coinness Global (@CoinnessGL) October 14, 2024
Monochrome’s Ethereum ETF begins trading on October 14th.
Traders and institutional investors will be able to purchase and trade the fund from Monday 14 October. 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 Monochrome CEO Jeff Yew, the company’s Ether ETF is different from the US Ether ETF. It is the world’s first Ether ETF with spot Ether redemption and subscription functions. Yew also explains that Monochrome’s new products boast better tax efficiencies for holders, which could spur demand.
What can you expect from the Monochrome Ethereum ETF?
This new product offers several useful features for local traders and investors. Monochrome’s Ethereum ETF is a dual access fund, meaning investors can enjoy subscriptions and redemptions in cash or spot.
The fund’s unique structure allows investors to transfer Ether into the ETF without changing beneficial ownership. This means investors don’t have to worry about additional costs associated with changing the ownership structure. Additionally, the fund’s structure gives investors full rights to their allocated Ether.
Monochrome Ethereum ETF competing with US funds
With its official launch this week, Monochrome’s Ethereum ETF now competes directly with U.S. cryptocurrency and ETF funds. Interested investors and traders can access the fund through popular Australian brokerage platforms and accept transfers using decentralized cold wallets and cryptocurrency platforms. It comes with a 0.5% management fee, which becomes 0.21% for accredited advisors.
The black-white ratio is 0.20-0.25%, similar to the United States. To make its products more competitive, Monochrome has partnered with industry players such as Gemini and BitGO for cryptocurrency storage.
Featured image from Pexels, chart from TradingView