Australia’s first in-kind Ethereum ETF by Monochrome launches, bringing new tax benefits and unique accessibility for investors.
IETH provides tax efficiency with a bare trust structure and competitive fee rates.ETF launched in August 2023—which has already attracted $15 million in assets—Monochrome’s new Ether ETF aims to provide Australian investors with direct exposure to ETH.Fortunately, after a swift approval process unlike the recent regulatory movements in the U.S., the IETH trading is set to commence on 14th October.Though modest compared to U.S.
Providing further insights on the same, Jeff Yew, CEO of Monochrome Asset Management, highlighted a unique tax efficiency feature of the IETH in an exclusive interview with a publication. He explained that the fund’s dual-access bare trust structure is designed to avoid capital gains tax events, offering a strategic advantage for long-term Ethereum holders.
This structure enables investors to transfer their Ethereum into the ETF without a shift in legal and beneficial ownership, potentially enhancing the tax advantages of in-kind subscriptions and redemptions.“A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own the Ethereum.
“US crypto ETFs can’t be supported in kind, including Bitcoin ETFs, and they are not operated in this timezone.”With fees set at 0.5%, reduced to 0.21% for accredited advisers, it aligns closely with U.S. market rates, i.e. 0.20%- 0.25%.Ishika is a graduate of Political Science from the University of Delhi. From writing content as a hobby to now pursuing it as a professional career, she has been living and breathing content all her life.
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