Three Ethereum exchange-traded funds (ETFs) approved in Canada by Canada Securities regulators. All Three Ethereum ETFs will be available next Tuesday on 20th April. The move follows shortly after Canada’s approval of first-to-market Bitcoin ETFs. The ETFs will be available on Toronto’s Stock Exchange(TSX).
The ETFs will be the first Ethereum ETFs in North America and the world. The companies behind the three separate ETFs are Evolve ETFs, Purpose Investment, and CI Global Asset management. Purpose and Evolve already have Bitcoin ETFs Trading on the TSX.
All three ETFs invest directly in Ether. It uses the Ethereum network, the most actively used blockchain network worldwide. ETFs are products that allow investors to buy shares that represent a certain asset—in this case, Ethereum. Investors can trade them continually throughout the day but don’t have to worry about the tricky stuff that comes with holding crypto, like storage.
The Ether ETF (TSX: ETHR) is waiving its management fee for the first 6 weeks, until May 31, 2021, as per the Evolve ETF website. Afterwards, ETHR’s management fee will revert to 0.75% of net asset value, plus applicable sales taxes.
CI Global Asset Management
Meanwhile, CI Global Management is launching the CI Galaxy Ethereum ETF (TSX: ETHX). The firm is working with Galaxy Digital on the fund. Galaxy Digital currently has a Bitcoin ETF application pending before the SEC.
According to CI Global Management, ETHX will charge a 0.40% management fee, matching the management fee of the CI Galaxy Bitcoin ETF (TSX: BTCX).
The third fund, the Purpose Ether ETF, will offer three separate share classes: Canadian dollar currency hedged units (ETHH), Canadian dollar non-currency hedged units (ETHH.B) and US dollar units with ticker nits (ETHH.U).
Ether holdings will be kept in cold storage with Gemini Trust Company, as sub-custodian, and CIBC Mellon Global Securities Services Company as fund administrator.
“While Bitcoin tends to get a lot of attention as it was the first major cryptocurrency, what Ether and the Ethereum ecosystem represent is one of the most exciting new technology visions today in society,” said Som Seif, founder, and CEO of Purpose Investments in a statement.
The US currently has 8 pending applications for Bitcoin ETFs to the Securities and Exchange Commission for approval; including Galaxy Digital. Canada is now becoming a hotspot for cryptocurrency ETFs.