Monochrome Asset Management is set to introduce Australia’s first spot Ethereum exchange-traded fund (ETF) on the Cboe exchange, following the approval of Ethereum ETFs in the U.S. market.
According to the firm’s announcement during a private event in Sydney, The Monochrome Ethereum ETF (IETH) will begin trading on Monday, October 14.
The fund will be available on most Australian brokerage platforms and support transfers from crypto platforms, decentralised systems, and cold storage wallets.
Like U.S. ETFs, IETH will track the CME CF Ether-Dollar Reference Rate and charge a management fee of 0.5%, with a lower fee of 0.21% for accredited advisers. Industry leaders BitGo and Gemini will handle custody services, and State Street Australia will serve as fund administrator.
This launch follows Monochrome’s introduction of a spot Bitcoin ETF in June, which has since attracted $15 million (US$10.1 million) in investments—small compared to U.S. figures.
Monochrome’s CEO, Jeff Yew, emphasised the unique tax advantages of IETH’s dual-access structure.
Today, we welcome $IETH to market.👏
The Monochrome Ethereum ETF is Australia’s first ETF to hold ETH directly.
Like IBTC, IETH features an in-kind subscription and redemption facility, enabling investors to transfer their ETH in/out of IETH.
More info: https://t.co/7P4BC95R4C pic.twitter.com/Ef6BOR1ppg
— Jeff Yew (@jeffyew_) October 14, 2024
The ETF will allow in-kind Ethereum subscriptions and redemptions, meaning investors may not face capital gains tax if the ownership remains unchanged. This structure gives investors direct entitlement to their Ethereum, ensuring that any trustee actions are on behalf of the client and offering a way to avoid tax liabilities during transfers. Yew highlighted that this feature sets the ETF apart from U.S. crypto ETFs, which lack in-kind support and are not managed within the same time zone.
