Monochrome to Launch ‘World First’ Ethereum ETF on Cboe Australia

Monochrome Asset Management is set to launch Australia’s first Ethereum exchange-traded fund (ETF) on Cboe. The approval of the ETF comes after the successful launch of Monochrome’s Bitcoin ETF in August 2023, which has attracted $15 million in assets. What sets Monochrome’s Ethereum ETF apart is its ability to offer in-kind subscriptions and redemptions, resulting in greater tax efficiencies for investors. The ETF’s unique bare trust structure ensures that investors have absolute entitlement to their Ethereum holdings, preventing any capital gains tax events upon redemption or transfer. While the US market has seen significant inflows into crypto ETFs, Monochrome aims to tap into the growing investor interest in Australia. The ETF will track the CME CF Ether-Dollar Reference Rate and will be available on various Australian brokerage platforms. Custody services for the ETF will be provided by BitGo and Gemini, while State Street Australia will be the fund administrator.