Three Management Firms Cleared To Open Ethereum ETFs in Canada

Sunday 18 April 2021, 3:57 PM AEST - 2 months ago

On Friday CI Global Asset Management, Purpose Investments Inc., and Evolve Funds have received clearance from Ontario Securities Commission to launch Ethereum exchange traded funds (ETFs) in Canada.

These ETFs will be available on Toronto’s Stock Exchange (TSX), which will allow retail investors in Canada to invest directly into the digital asset from 20 April 2021. Ethereum (ETH), which is currently the second-largest cryptocurrency by market capitalisation, is the obvious next choice for institutions looking to get their feet wet in the crypto economy.

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

Som Seif, founder and CEO of Purpose Investments

Three Ethereum ETFs in One Day

All three of these funds were cleared on Friday:

The CI Galaxy Ethereum ETF will trade in Canadian dollars (ETHX.B, unhedged) and in U.S. dollars (ETHX.U). CI GAM is the manager of the ETF and Galaxy Digital Asset Management (“GDAM”) will be the sub-advisor.

Purpose Investments is the manager of Purpose Ether ETF and Ether Capital Corporation will consult. The ETH will be kept in cold storage with Gemini acting as the sub-custodian and CIBC Mellon Global Securities acting as the fund administrator. 

The approval comes a little over two months after Canada approved the Purpose Bitcoin ETF which held 10,064 BTC in the first week of trading.

Purpose ETF is designed to provide investors with exposure to ether by investing directly in physically settled ether. The ETF will offer three classes of units: Canadian dollar currency hedged units (ETHH), Canadian dollar non-currency hedged units (ETHH.B) and U.S. dollar units with ticker units (ETHH.U).

Evolve Funds stated that “similar to Bitcoin, investors will now be able to trade Ether as simple as buying shares through their bank or brokerage.” Evolve’s ETF will trade on the TSX as ETHR.

Canada Crypto Rush

Earlier this year Canada had also approved Bitcoin ETFs. Two of which broke records with their trading volumes: Purpose trading $80 million in its first hour and Evolve raised $421 million in just two days. With the now soon-to-be open Ethereum ETFs, mainstream crypto adoption is warming up in Canada.

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