A New Chapter for Ethereum in Australia
Monochrome Asset Management is gearing up to drop Australia’s first spot Ethereum ETF (IETH) on the Cboe, bringing fresh energy to the local crypto scene. Set to kick off trading on Tuesday at 10 AM AEDT, this move follows Monochrome’s earlier Bitcoin ETF (IBTC), which has already pulled in $15 million since its August launch. Although that’s still pocket change compared to the U.S. crypto giants, Monochrome is flexing with a unique feature—offering in-kind Ethereum subscriptions and redemptions.
Bare Trust Structure Aims for Tax Perks
What really makes this Ethereum ETF pop is its tax-savvy design. Monochrome’s CEO, Jeff Yew, laid out the perks of their “bare trust” structure, which lets long-term holders swap their Ethereum for ETF shares without triggering capital gains tax (CGT). Yew explained, “A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own the Ethereum.” Investors, then, keep legal and beneficial ownership, dodging CGT when they move their ETH into the fund or out of it.
This bare trust structure isn’t just for tax wizards—it could attract everyday crypto heads who want to park their Ethereum into an ETF without the usual tax baggage. Plus, it’s an edge over U.S. Ethereum ETFs, where in-kind transfers aren’t an option.
Building on U.S. Approval Buzz
The U.S. market got its Ethereum ETF blessings earlier this year, with nine spot Ethereum ETFs getting the green light in May. Those funds are now swimming in billions, but Australia’s scene isn’t about to match those flows anytime soon. Still, Monochrome is banking on a rising tide of investor interest to carve out a solid niche in the local market.
But unlike its U.S. cousins, Monochrome’s ETF is supported by in-kind transfers, which U.S. crypto ETFs can’t offer. And for those keeping track, the ETF will follow the CME CF Ether-Dollar Reference Rate, with a competitive management fee sitting at 0.50%—slashed to 0.21% for accredited advisers.
Crypto Custody and Support Locked In
Monochrome’s got the infrastructure nailed down too. BitGo and Gemini are on board for custody services, while State Street Australia will act as the fund administrator. Investors can slide their Ethereum into the ETF from crypto platforms, decentralized wallets, or cold storage.
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