Monochrome to launch Australia’s first spot Ethereum ETF on Cboe

Monochrome Asset Management is set to introduce Australia’s first spot Ethereum (CRYPTO:ETH) exchange-traded fund (ETF), named IETH, on Cboe Australia.

The ETF is scheduled to begin trading on Tuesday at 10 AM AEDT, offering a unique feature compared to U.S. counterparts: in-kind Ethereum subscriptions and redemptions, which aim to provide tax efficiency for investors.

According to Monochrome’s CEO Jeff Yew, the dual-access bare trust structure allows investors to transfer Ethereum into the ETF without triggering a capital gains tax (CGT) event, as long as legal and beneficial ownership remains unchanged.

This structure ensures that investors retain full entitlement to their allocated Ethereum, setting Monochrome’s product apart from similar U.S. offerings.

The ETF will track the CME CF Ether-Dollar Reference Rate – Asia Pacific Variant and will charge a management fee of 0.50%, with a reduced rate of 0.21% for accredited advisers.

While the Australian market may not experience the large inflows seen in the U.S. following the approval of Ethereum ETFs earlier this year, Monochrome aims to attract increasing local investor interest.

Monochrome’s IETH launch follows its Bitcoin ETF (IBTC) in 2023, which raised $15 million, and the company hopes to build on that success.

BitGo and Gemini will provide custody services for IETH, and State Street Australia will act as the fund administrator.

IETH will be accessible via major Australian brokerage platforms and will support transfers from crypto platforms, decentralised wallets, and cold storage, providing investors with multiple options for participation.

At the time of writing, the Ethereum price was $2,448.36.