Major Institutional Adoption Boost As Australia’s First Spot Ether ETF Set To Launch On Tuesday ⋆ ZyCrypto
The post Major Institutional Adoption Boost As Australia’s First Spot Ether ETF Set To Launch On Tuesday ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     Australia-based asset management firm Monochrome is set to launch the nation’s first spot Ethereum exchange-traded fund on the global listing exchange Cboe following Ether’s much-awaited arrival on American exchanges. Monochrome’s spot Ethereum ETF will be the first in Australia to hold physical ETH in its ETF, similar to the U.S.-based products. It follows the August rollout of the company’s flagship product, the Monochrome Bitcoin ETF (IBTC), also recognized as Australia’s first ETF that holds BTC directly. Australia Allows In-Kind Creations For Monochrome’s Spot Ether ETF Australia is set to join the United States in offering investors an ETF that invests in and directly holds the world’s second-largest crypto by market cap, Ethereum. The Monochrome Ethereum ETF (IETH) will begin trading on the Cboe Australia exchange on Tuesday, Oct. 15 at 10:00 local time. IETH positions itself as the world’s first Ethereum exchange-traded fund to allow in-kind creations and redemptions for spot ETH ETFs, an important distinction from the cash-only redemptions for the U.S. ETH spot-based products. This could potentially pave the way for a massive investor base across Australia to enter the crypto market. With the in-kind redemptions feature for ETFs, the underlying asset doesn’t actually have to be sold. Investors and issuers, therefore, prefer it as it allows for greater tax efficiencies, Monochrome CEO Jeff Yew noted. Advertisement   Cash–only redemptions, on the other hand, mean ETF shares can be exchanged only for cash, which typically means costlier tax and trading considerations. Monochrome’s Ether ETF also comes with a dual-access bare trust structure that aims to prevent a capital gains tax event, letting long-term crypto participants move Ether into the corresponding Monochrome ETF without triggering a change of legal and beneficial ownership. “A ‘bare trust’ means that your investment in the ETF may be treated as…
Filed under: News - @ October 14, 2024 12:25 pm