Australia is joining the global ETF craze courtesy of Monochrome ETF (IETH). Monochrome’s announcement comes two months after the company launched its Bitcoin ETF (IBTC), which boasts an investment of $10.1 million since August last year.
The product’s success primarily influenced the company’s entry into the spot ETF market in the United States.
Months after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs, the agency also gave the green lightweight to an Ether ETF, paving the way for broader institutional participation.
Although the reception of this place was needy Ether ETFs immediately after launch, this does not dampen the enthusiasm of the Monochrome team to introduce the same product in Australia.
Image: Monochrome Asset Management
The fresh Monochrome product is characterized by reduced tax liabilities and non-cash redemption. The company hopes that this additional feature will arouse excitement in the industry and enhance demand.
Monochrome will launch the first Ethereum ETF on Cboe Australia
Australian digital asset management company Monochrome is set to launch Australia’s first Ethereum spot ETF (IETH), which will begin trading on Monday on Cboe Australia, according to Decrypt. Previously, Monochrome launched…
— Coinness Global (@CoinnessGL) October 14, 2024
Monochrome’s Ethereum ETF trading begins on October 14
Traders and institutional investors can expect to purchase and trade the fund from Monday, October 14. The product will be displayed and sold on the website Cboe from Australiawhich provides participants with a platform to trade various asset classes and products.
According to Jeff Yew, CEO of Monochrome, the company’s ETF is different from its US counterpart. This is the world’s first ETF with physical Ether redemption and subscriptions. Yew further explains that Monochrome’s fresh product has improved tax efficiency for holders, which could stimulate demand.
What can you expect from a monochrome Ethereum ETF?
This fresh product offers several useful features for local traders and investors. The Monochrome Ethereum ETF is a dual-access fund, which means investors can benefit from applications and redemptions in cash or in-kind.
The fund’s unique structure allows an investor to transfer Ether to an ETF without changing the beneficial owner. In brief, investors do not have to worry about additional costs related to changing the ownership structure. The fund structure also gives the investor full rights to the allocated Ether.
Monochromatic Ethereum ETF competes with US funds
With its formal launch this week, Monochrome’s Ethereum ETF competes directly with U.S. crypto funds and ETFs. Interested investors and traders can access the fund through popular Australian brokerage platforms and accept transfers using decentralized and frosty wallets and crypto platforms. It includes a management fee of 0.5%, which is 0.21% for an accredited advisor.
The monochrome rate is comparable to the US rate at 0.20 to 0.25%. To make its offering more competitive, Monochrome has partnered with industry players such as Gemini and BitGO for cryptocurrency storage.
Featured image from Pexels, chart from TradingView
