Monochrome Set to Begin Unique Ethereum ETF Offering on Cboe in Australia

Reports have it that Monochrome Asset Management is about to commence trading of its spot Ethereum ETF on Cboe Australia, offering a unique feature that differentiates it from other spot Ethereum ETFs in the US and within Australia. The unique offerings are expected to woo investors who have eyes on capital gains. As Monchrome’s asset still awaits an operating license in the U.S. market, it’s launch in Australia will make it the pioneer spot Ethereum ETF to be traded on Cboe. 

IETH, the Ethereum exchange-traded fund of Monochrome, will start trading on Tuesday, 15th of October 2024, by 10 am AEDT. Although the fund’s financial muscle may not toe shoulder-to-shoulder with its American counterparts, it is set to initiate a product offering that will make IETH the first to do so in the world. IETH’s in-kind subscriptions on the Ethereum framework are designed to provide tax efficiency opportunities.

The unique offering is a “bare trust” feature that pitches the ETF’s investor as though he is an Ethereum owner. Furthermore, it provides a tax hedge for investors earning capital gains. It provides an avenue for Ethereum transfers to IETH without the need for legal and beneficial title changes. With this, investors have total ownership of the ETH allocated to them. With beneficial title remaining the same, any transfer or reception of assets does not instigate any CGT activity. 

With this feature, Monochrome Asset Management sets its eyes on establishing a unique selling point other funds in the U.S. have yet to explore. Recall that some months ago, the Securities and Exchange Commission published a shortlist of approved a total of 11 funds as spot Bitcoin ETFs. This was before the May shortlisting of 11 spot Ethereum exchange-traded funds. 

Current indicators suggest that the Australian market may not be witnessing such volume of inflows anytime soon but Monochrome is optimistic about improving on its inflows from booming investor interest.