Following a massive success with the Bitcoin ETF (exchange-traded fund), the Canadian securities regulators have now approved Ethereum exchange-traded fund (ETF). Purpose Investments, CI Global Asset Management, and Evolve ETFs were all approved by Canadian regulators to introduce Ethereum-powered ETFs today. The ETFs will be the first ETH ETFs in North America. Some observers noted that all the three gaining approval at once might have been a part of an effort of not giving Purpose an unfair advantage.
Purpose received an edge after the launch of the wildly famous Purpose Investments ETF, the first North American Bitcoin ETF, which rapidly surged to $1.3 billion in asset under management (AUM) while opponents waited for approval. Rival Evolve Fund Group’s Bitcoin ETF only attracts $100 million in AUM, notwithstanding launching only two days later than Purpose and offering 25% less management fees.
Ethereum ETFs to be Available on Toronto Stock Exchange
Furthermore, all three freshly approved Ethereum ETFs will be accessible next Tuesday. The ETFs will be accessible on TSX (Toronto’s Stock Exchange). It will provide exposure to investors to the second-largest crypto by market cap, Ethereum. CI and Galaxy’s stocks will be listed as ETHX.B in Canadian dollars (unhedged) and ETHX.U in U.S. dollars. Moreover, Evolve’s ETF will trade on the TSX as ETHR.
Purpose revealed that its ETF would sell three classes of shares on Toronto Stock Exchange. It involves Canadian dollar currency-hedged units (ETHH), Canadian dollar non-currency hedged units (ETHH.B), and U.S. dollar units with ticker units (ETHH.U). Moreover, Purpose will lead the ETF, obtaining consultation from Ether Capital Corporation. NY-based Gemini will be the custodian of the supported digital assets, and CIBC Mellon Global Securities Services Company will serve as the fund administrator.
Meanwhile, the neighboring U.S. regulators still cannot make up their minds in accepting Bitcoin ETFs. Canada has proved to be progressive towards the regulated crypto instruments. The nation approved its first Bitcoin ETF prior in February, which saw a massive demand from investors. Most lately, the Canadian regulator confirmed two Bitcoin ETFs by Horizons, one of which will enable investors to hold short positions on the digital currency.
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