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World’s 1st Ethereum ETF With In-Kind Redemption Debuts—A New Era For Crypto Investors

Bitcoinist

Bitcoin News / Bitcoinist 57 Views

Australia is joining the global spot ETF frenzy courtesy of Monochrome’s Ethereum ETF (IETH). Monochrome’s announcement comes two months after the company launched its Bitcoin ETF (IBTC), which boasts a US$10.1 million investment since August last year.

The product’s success primarily influenced the company’s foray into the spot ETF market in the United States.

A few months after the US Securities and Exchange Commission (SEC) approved the spot Bitcoin ETFs, the agency also had the green light on Ether’s ETF, paving the way for broader institutional participation.

Although there was poor reception for the spot Ether ETFs immediately after its launch, this doesn’t dampen the spirits of the Monochrome team to introduce the same product in Australia.

Monochrome’s new product boasts reduced tax liabilities with an in-kind redemption. The company is counting on this extra feature to bring excitement into the industry and boost demand.

Monochrome’s Ethereum ETF Starts Trading On October 14th

Traders and institutional investors can expect to buy and trade the fund starting Monday, October 14th. The product will be listed and traded at Cboe Australia, which provides a platform for participants to trade a variety of asset classes and products.

According to Jeff Yew, Monochrome’s CEO, the company’s Ether ETF differs from its US counterpart. It’s the world’s first Ether ETF with in-kind Ether redemption and subscriptions. Yew further explains that Monochrome’s new product boasts better tax efficiency to holders, which can spur demand.

What Can You Expect From The Monochrome Ethereum ETF?

This new product offers several helpful features for local traders and investors. Monochrome’s Ethereum ETF is a dual-access fund, meaning investors can enjoy cash or in-kind applications and redemptions.

The fund’s unique structure allows an investor to transfer Ether into the ETF without changing the beneficial ownership. In short, investors don’t have to worry about additional costs associated with a change in ownership structure. The fund’s structure also gives the investor full entitlement to the allocated Ether.

Monochrome Ethereum ETF To Compete Against US Funds

With its formal launch this week, Monochrome’s Ethereum ETF now directly competes with US crypto and ETF funds. Interested investors and traders can access the fund through popular Aussie brokerage platforms and accept transfers using decentralized and cold wallets and crypto platforms. It comes with a 0.5% management fee, which becomes 0.21% for an accredited adviser.

Monochrome’s rate is comparable to that in the US, with rates ranging from 0.20 to 0.25%. To make its offerings more competitive, Monochrome has partnered with industry players like Gemini and BitGO for its crypto custody.

Featured image from Pexels, chart from TradingView


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