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Australian asset manager Monochrome Asset Management is gearing up to launch the country’s first spot Ethereum ETF (exchange-traded fund).
The new fund comes just 4 months after the firm launched its spot Bitcoin ETF in June, and will be listed on the Australia Cboe exchange on Oct. 15 at 10:00 a.m. local time.
Monochrome Ethereum ETF Will Be More Tax Efficient Than US Funds
The Monochrome Ethereum ETF is being positioned as the first ETH ETF to offer in-kind subscriptions and redemptions for the largest altcoin by market cap. According to the asset manager’s CEO, Jeff Yew, this differing model might provide greater tax efficiency to investors, making the fund more attractive than its US competitors.
Through a dual-access bare trust structure, the Monochrome Ethereum ETF aims to prevent capital gains tax events for long-term investors. This structure will allow investors to transfer ETH into Monochrome’s fund without triggering a change in legal or beneficial ownership, preventing immediate tax liabilities for investors.
Additionally, the structure chosen by Monochrome will grant investors complete entitlement to the ETH that they have allocated to the fund. This means that any actions performed by the fund’s trustee will fall under actions taken for each investor. Any redemption or transfer will subsequently be shielded from capital gains tax as long as the ownership remains the same.
US Spot Ethereum ETF Products Record Outflows After Grayscale’s ETHE Loses Over $8 Million
US spot Ethereum ETFs recorded net outflows on Oct. 11. Despite the $8.6 million inflows recorded by Fidelity’s FETH on the day, the $8.7 million withdrawn from Grayscale’s ETHE tipped the net flows negative. The rest of the funds recorded no new flows on Friday.
Ethereum ETF Flow (US$ million) – 2024-10-11
TOTAL NET FLOW: -0.1
ETHA: 0
FETH: 8.6
ETHW: 0
CETH: 0
ETHV: 0
QETH: 0
EZET: 0
ETHE: -8.7
ETH: 0For all the data & disclaimers visit:https://t.co/FppgUwAthD
— Farside Investors (@FarsideUK) October 12, 2024
Just the day before, $10.1 million entered the US funds. BlackRock’s ETHA led the charge, pulling in $17.8 million on Oct. 10.
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