World’s 1st Ethereum ETF With In-Kind Redemption Debuts—A New Era For Crypto Investors
Australia is making significant strides in the global spot Exchange-Traded Fund (ETF) landscape, thanks to Monochrome’s introduction of its Ethereum ETF (IETH). This development follows closely on the heels of the company’s successful launch of its Bitcoin ETF (IBTC), which has attracted an impressive US$10.1 million investment since August of the previous year. Monochrome’s foray into this market is largely driven by the success of its initial product and the growing interest in digital asset investments.
The Rise of Spot ETFs: A Global Perspective
The approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) marked a pivotal moment in the ETF market. This approval was soon followed by the authorization of Ether ETFs, signaling a broader acceptance and enabling increased institutional participation. Despite an initial lukewarm response to spot Ether ETFs, Monochrome remains undeterred in its mission to introduce a similar product in the Australian market.
Innovative Features of Monochrome’s Ethereum ETF
Monochrome’s latest offering is designed with unique features that set it apart in the industry. One standout aspect is its reduced tax liabilities through in-kind redemption. This feature is expected to ignite interest in the industry and drive demand among investors seeking tax-efficient solutions. The Ethereum ETF is poised to attract both traders and institutional investors as it becomes available for trading on Cboe Australia.
Monochrome’s Ethereum ETF Begins Trading on October 14th
Commencing on Monday, October 14th, traders and institutional investors will be able to buy and trade Monochrome’s Ethereum ETF on Cboe Australia. This platform supports the trading of various asset classes and products, thereby providing a robust infrastructure for the ETF’s launch. According to Monochrome’s CEO, Jeff Yew, this Ether ETF is distinct from its US counterparts, being the first in the world to offer in-kind Ether redemption and subscriptions, enhancing tax efficiency for holders and potentially increasing demand.
Benefits and Features of the Monochrome Ethereum ETF
Investors and traders can anticipate several advantages from Monochrome’s Ethereum ETF. As a dual-access fund, it offers both cash and in-kind applications and redemptions, allowing investors the flexibility to transfer Ether into the ETF without altering beneficial ownership. This structure effectively eliminates additional costs that might arise from changes in ownership, while also ensuring full entitlement to the allocated Ether.
Competing in the Global Market: Monochrome Ethereum ETF
With its official launch, Monochrome’s Ethereum ETF is set to compete directly with US-based crypto and ETF funds. It is accessible to investors and traders through leading Australian brokerage platforms, supporting transfers via decentralized and cold wallets, as well as crypto platforms. The ETF comes with a management fee of 0.5%, which is reduced to 0.21% for accredited advisers, making it competitively priced relative to US funds where rates typically range from 0.20% to 0.25%. To further enhance its offerings, Monochrome has partnered with leading industry players like Gemini and BitGO for secure crypto custody.
