Australia is joining the global rush for spot Ethereum ETFs with Monochrome’s new Ethereum ETF (IETH). This follows the success of their Bitcoin ETF (IBTC), which has attracted over $10 million in investments since last August.
In-Kind Redemption: A Unique Feature
Monochrome’s Ethereum ETF is unique because it offers in-kind redemption. This means investors can redeem their shares for actual Ethereum, rather than cash. This feature is expected to boost demand for the ETF, as it offers tax advantages and allows investors to hold their Ethereum directly.
Trading Starts on October 14th
The ETF will be listed and traded on Cboe Australia, starting on Monday, October 14th. Investors can access the ETF through popular Australian brokerage platforms and can even transfer Ethereum using decentralized and cold wallets.
Key Features of the Monochrome Ethereum ETF:
- Dual-access: Investors can choose to redeem their shares for cash or Ethereum.
- Tax efficient: In-kind redemption offers tax advantages for investors.
- Direct ownership: Investors maintain ownership of their Ethereum even when invested in the ETF.
- Competitive fees:
The ETF has a management fee of 0.5%, which is comparable to similar ETFs in the US.
A New Era for Crypto Investors
Monochrome’s Ethereum ETF is a significant development for the Australian crypto market. It provides investors with a new way to access Ethereum, offering both convenience and tax efficiency. This ETF is likely to attract a lot of interest from both individual and institutional investors.
