Monochrome Asset Management is set to launch Australia's first Ethereum spot ETF on the Cboe exchange. The new ETF, trading under the ticker IETH, will begin trading in the coming week.

What is the Monochrome Ethereum ETF?

The Monochrome Ethereum ETF (IETH) provides investors with a regulated and direct method to invest in Ethereum, the second-largest cryptocurrency by market capitalization. IETH will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant, offering a trusted and transparent benchmark for Ethereum's price. Its unique feature allows for subscription and redemption without triggering a capital gains tax (CGT) event, which is particularly attractive for long-term Ethereum holders.

Security and Regulatory Support

To ensure security and regulatory compliance, Monochrome has partnered with leading providers such as BitGo, who will act as the custody provider. Additional custody services are offered by crypto exchange operator Gemini, with fund administration provided by State Street Australia.

Global Market Trends

The launch of the Ethereum ETF by Monochrome aligns with a broader trend in global markets. In the U.S., the Securities and Exchange Commission (SEC) has approved the first spot Bitcoin ETFs, followed by several Ethereum ETFs. To date, the U.S. spot Bitcoin ETFs have already attracted $18.81 billion in total net inflows.

The launch of Australia's first Ethereum spot ETF by Monochrome reflects the ongoing interest in cryptocurrency investments and the development of regulated financial instruments in this area.