Australia is on track to get its first Ethereum ETF product as Monochrome Asset Management has continued to lead the sector
Monochrome Asset Management is about to roll out Australia’s first spot Ethereum ETF product. The launch of the Monochrome Ethereum ETF (IETH) is scheduled for Tuesday at 10:00 local time on Cboe. This comes after the asset manager’s spot Bitcoin ETF launch in August.
The Monochrome Ethereum ETF Model
It is worth noting that IETH is designed to allow both cash and in-kind applications and redemptions for investors. This means that investors can buy into and cash out of the fund with Ethereum. This is in sync with the standard utilized for the spot crypto ETFs in Hong Kong. According to Monochrome’s CEO, Jeff Yew, combining cash and in-kind redemption would promote greater tax efficiencies.
For context, this structure gives investors absolute entitlement to their allocated Ethereum. The dual-access bare trust structure ensures that a capital gains tax event does not occur. It allows long-term crypto participants to move their Ethereum into the corresponding Monochrome ETF without requiring a legal and beneficial title change.
“A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own the Ethereum,” Yew explained.
US Inspires Other Countries to Pursue Spot Crypto ETFs
Monochrome’s IBTC has garnered attention so far, raking in as much as $10.1 million with 165 BTC in its holding. Since the United States approved and listed spot crypto ETFs, many other nations have found inspiration to issue similar offerings. Hong Kong launched its Bitcoin and Ethereum ETFs this year.
However, these products have performed better in the US than in the Asian country. SoSoValue data shows that US-listed ETFs held Bitcoin worth $58.66 billion and Ethereum worth $6.74 billion. On the other hand, Hong Kong’s spot Bitcoin ETF holds $262.97 million in net assets while its Ethereum ETFs hold net assets of $35.07 million.
South Korea is likely to launch its spot crypto ETFs in the future. Last week, the region’s Financial Services Commission announced its intention to review the approval of ETFs.
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