Monochrome Ethereum ETF (IETH) Goes Live on Cboe

The Monochrome Ethereum exchange-traded fund (IETH) will start trading on Monday, October 14, on the Australia Cboe exchange.

Monochrome Asset Management, an Australian asset manager, is preparing to launch the country's first spot Ethereum exchange-traded fund (ETF) on Monday, October 14.

The Monochrome Ethereum ETF, to be known as IETH, will begin trading on the Cboe Australia exchange.

This launch comes four months after the asset manager introduced its spot Bitcoin ETF to Australian investors in June this year.

Monochrome is also planning to launch a physical gold ETF on the exchange later this year.

Monochrome Ethereum ETF to Offer In-Kind Subscriptions, Redemptions

The Monochrome Ethereum ETF will be the world's first Ether ETF to offer in-kind Ether subscriptions and redemptions, a feature that could provide greater tax efficiencies to investors, according to Monochrome CEO Jeff Yew.

Monochrome's IETH and IBITF (Bitcoin ETF) are dual-access bare trust structures that seek to prevent capital gains tax events for long-term crypto holders.

This innovative structure will allow participants to transfer Ether into the ETF without triggering a change in legal or beneficial ownership. Thus, it helps investors avoid immediate tax liabilities.

Monochrome has been gearing up for its Ether ETF launch since September.

Monochrome's new structure will grant investors absolute entitlement to their allocated Ethereum. As a result, any actions from the trustee will be part of the actions for the investor preventing them from capital gains tax during transfer or redemption, as long as the ownership remains the same. Monochrome believes that this would set its Ethereum ETF apart from its US counterparts.

“A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own the Ethereum,” Yew explained in a word with Decrypt. “US crypto ETFs can't be supported in kind, including Bitcoin ETFs, and they are not operated in this timezone.”

Monochrome Ethereum ETF (IETH) to Compete With US Counterparts

The Monochrome Ethereum ETF (IETH) will be available through most Australian brokerage platforms and will support transfers from crypto platforms, decentralized wallets, and cold storage wallets.

IETH will also follow the CME CF Ether-Dollar Reference Rate and carries a management fee of 0.5%, reduced to 0.21% for accredited advisers. This fee structure aligns it with U.S. competitors, which offer fees averaging between 0.20% and 0.25%.

Monochrome has also roped in top market players like BitGo and Gemini to provide crypto custody for IETH. Meanwhile, State Street Australia will be the fund administrator for the ETF.

Monochrome is also planning to launch a physical gold ETF on the Cboe later this year, according to Yew.

Monochrome's Initiatives Amid Weak US Demand for Ether ETFs

Monochrome is launching its spot Ethereum ETF despite the poor demand for the spot Ether ETF in the first three months following the U.S. launch.

However, several asset managers are still planning to launch their own Ether ETFs in the coming months.

If the overall market demand revives, even Monochrome's IETH would benefit from it.

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