Australian asset manager Monochrome Asset Management is gearing up to launch the country’s first Ethereum spot ETF. The listing is expected to take place on October 15 on the Cboe Australia exchange.
Launch of Australia's First Ethereum ETF
The new fund will be launched just four months after the firm's spot Bitcoin ETF went live. The Monochrome Ethereum ETF will be listed on Cboe Australia on October 15 at 10:00 a.m. local time.
Features of Monochrome's ETF
The Monochrome Ethereum ETF is positioned as the first to offer in-kind subscriptions and redemptions for Ethereum, the largest altcoin by market cap. According to Monochrome's CEO, Jeff Yew, this model may provide greater tax efficiency for investors compared to U.S. alternatives. The fund utilizes a dual-access bare trust structure which aims to prevent capital gains tax events for long-term investors, allowing them to transfer Ethereum into the fund without triggering a change in legal or beneficial ownership.
Outflow from US Ethereum ETFs
US spot Ethereum ETFs recorded net outflows on October 11. Despite $8.6 million inflows to Fidelity’s FETH that day, $8.7 million were withdrawn from Grayscale’s ETHE, tipping the net flows negative. Other funds reported no new flows on Friday. The previous day, $10.1 million entered US funds, with BlackRock's ETHA leading the way by attracting $17.8 million.
The launch of Monochrome's Ethereum ETF in Australia marks a significant development in cryptocurrency-based financial products, offering investors a more tax-efficient model than those available in the U.S. This event may impact the future growth of crypto ETFs both in Australia and globally.