Hold onto your hats, crypto enthusiasts! Monochrome Asset Management is shaking things up Down Under with the launch of Australia's very first spot Ethereum exchange-traded fund (ETF). This groundbreaking move is set to hit the Cboe exchange after getting a green light in the U.S. market.
Picture this: a private bash in Sydney with Monochrome's team, service providers, and partners, all toasting to the upcoming debut of the Monochrome Ethereum ETF, lovingly dubbed IETH. This isn't just any launch; it's a whole new way for Aussie investors to dive into the world of cryptocurrency. Mark your calendars because trading kicks off on Monday, October 14!
What's the big deal, you ask? Well, with IETH, you can easily access the crypto market through most Australian brokerages. Whether you're transferring from crypto platforms or using decentralized and cold storage wallets, this ETF is designed to make things a breeze. And let's not forget the competitive management fee – a cool 0.5%, with a sweet discount to 0.21% for the savvy accredited advisers out there.
Monochrome has pulled out all the stops for this launch, partnering with industry titans like BitGo and Gemini for crypto custody services, and State Street Australia as the fund administrator. It's a powerful lineup ready to rock the crypto world.
This isn't Monochrome's first rodeo, though. They rolled out a spot Bitcoin ETF back in June, raking in $15 million (or US$10.1 million) in investments. While it might not be U.S. level yet, it's a significant stride for the Aussie market.
Since September, Monochrome has been gearing up for this moment, confident that their unique structure makes this ETF stand out on the global stage. Get this—the IETH fund is the first worldwide to offer in-kind Ethereum subscriptions and redemptions. CEO Jeff Yew highlighted the potential tax perks, explaining that it could be like directly owning the Ethereum itself—sweet deal, right?
Unlike U.S. crypto ETFs, this spot Ethereum ETF uses a snazzy dual-access bare trust structure to dodge capital gains tax for long-term holders. This means you can transfer Ethereum into the ETF without changing ownership, sidestepping those pesky immediate tax liabilities.
And here's the kicker: investors get absolute entitlement to their allocated Ethereum. So, any moves by the trustee are on your behalf, ensuring you won't face capital gains tax during transfers or redemptions as long as ownership stays put.
So there you have it, folks! Monochrome is leading the charge in the Australian crypto scene, and the launch of IETH is just the beginning. Get ready to ride the Ethereum wave!
