Australia’s Monochrome Asset Management is set to launch the country’s first spot Ethereum exchange-traded fund (ETF) called IETH on the Australia Cboe exchange. The announcement follows a private event in Sydney where Monochrome shared details on the upcoming ETF with its service providers, team, and partners. This move comes three months after the launch of a similar product in the US, which has not received the same level of demand as spot Bitcoin ETFs. In June, Monochrome introduced Australia’s first Bitcoin ETF, IBTC, under the country’s crypto licensing rules, providing Australians with a regulated way to access Bitcoin.
The Monochrome Ethereum ETF, IETH, functions as a dual-access fund, allowing investors to make cash and in-kind applications and redemptions. This approach expands the range of regulated crypto-asset investment options available to Australian investors. By holding Ethereum passively, IETH provides retail investors with a regulated opportunity to gain exposure to the second-largest cryptocurrency. Monochrome CEO Jeff Yew highlighted the tax benefits of the ‘bare trust’ function of the ETF, where investors may be treated as if they directly own Ethereum, ensuring absolute entitlement to their allocated assets and potentially reducing capital gains tax liabilities. Monochrome’s aim is to differentiate IETH from its US counterparts through this unique structure.
The authorization of Monochrome’s spot Bitcoin ETF under Australia’s Financial Services Licensing regime demonstrates the company’s commitment to providing regulated and compliant investment vehicles for Australian investors seeking exposure to digital assets. By offering both Bitcoin and Ethereum ETFs, Monochrome is broadening the options available to retail investors looking to diversify their portfolios with cryptocurrencies. The introduction of the IETH ETF presents a new opportunity for Australians to invest in Ethereum through a regulated and transparent financial product, potentially opening up the market to a wider range of investors interested in digital assets.
In a strategic move to expand its product offerings, Monochrome filed for the IETH ETF alongside its Responsible Entity partner Vasco Trustees Limited in September. This collaboration aims to leverage Monochrome’s expertise in digital asset management with Vasco Trustees’ experience in financial services to create a robust and compliant investment vehicle for Australian investors. The launch of the Monochrome Ethereum ETF represents the company’s ongoing efforts to innovate and provide regulated investment options for retail investors interested in cryptocurrencies. With the success of its Bitcoin ETF and the upcoming launch of the Ethereum ETF, Monochrome is positioning itself as a key player in the Australian digital asset market.
The dual-access ‘bare trust’ structure of the IETH ETF sets it apart from other crypto investment products by offering investors direct ownership and potential tax advantages. This unique feature appeals to investors seeking a transparent and tax-efficient way to gain exposure to Ethereum. By aligning its product design with investor needs and regulatory requirements, Monochrome is addressing the growing demand for regulated crypto investment options in Australia. The launch of the IETH ETF signals a new era for digital asset investment in the country, providing investors with access to Ethereum in a secure and compliant manner. As the crypto market continues to evolve, Monochrome remains at the forefront of innovation in regulated crypto investment products, solidifying its position as a leading asset manager in Australia.
