Monochrome Asset Management, a leading crypto investment firm in Australia, is set to launch the country's first Ethereum spot exchange-traded fund (ETF) on the Cboe exchange. The new ETF, trading under the ticker IETH, will be available starting either Monday or Tuesday at 10 AM AEDT.

What is the Monochrome Ethereum ETF?

The Monochrome Ethereum ETF (IETH) is designed to provide investors with a regulated and direct method to invest in Ethereum, which is the second-largest cryptocurrency by market capitalization. IETH will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant, providing investors with a trusted and transparent benchmark for Ethereum’s price. The ETF is distinctive due to its in-kind subscription and redemption process, which allows investors to transfer Ethereum into and out of the ETF without triggering capital gains tax (CGT). This feature, known as the bare trust structure, enables long-term Ethereum holders to transfer their assets to the ETF while maintaining full ownership of their tokens.

Crypto Custody Services and Regulatory Approval

Monochrome has partnered with industry-leading providers to ensure the security and regulatory compliance of the ETF. Crypto financial services firm BitGo will serve as the custody provider, ensuring the safekeeping of Ethereum assets. Meanwhile, Gemini, a prominent crypto exchange operator, will offer additional custody services. Fund administration will be handled by State Street Australia. The launch of Monochrome’s Ethereum ETF aligns with a broader trend in the global markets. In the U.S., the Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs earlier this year, followed by several Ethereum ETFs.

Global Trends in Crypto ETF Launches

The global market is witnessing a growing trend in the launch of crypto ETFs. In the U.S., spot Bitcoin ETFs have already attracted significant net inflows, indicating strong investor interest in such instruments. Now, with Australia entering the fray with its first Ethereum spot ETF, new opportunities are opening up for both local and international investors in the region.

The launch of the first Ethereum spot ETF on the Australian market illustrates the increasing interest in cryptocurrencies and the drive towards their broader acceptance in regulated financial instruments. Monochrome has become a pioneer in this space, providing investors with new avenues for accessing digital assets through spot exchange-traded funds.