The Canadian regulator, the Ontario Securities Commission, has approved three Ethereum ETFs (exchange-traded funds). CI Global Asset Management company, Purpose Investments Inc., company, and Evolve Fund Group Inc., have both received approval to launch three separate Ether ETFs.
The Ether ETFs would be available on Toronto Stock Exchange (TSX) to give investors exposure to the second-largest cryptocurrency by market capitalization, Ether.
Evolve and Purpose already have Bitcoin ETFs trading on Toronto Stock Exchange (TSX).
CI Global Asset Management is collaborating with Galaxy Digital holdings Ltd to launch CI Galaxy Ethereum ETF on April 20 on the Toronto stock exchange, subject to TSX approval. Steve Kurz, the partner and head of Asset Management at Galaxy Digital, said: “We are thrilled to continue building our advisory relationship with CI. The CI Galaxy Ethereum ETF gives investors a simplified path to benefit from the explosion of decentralized applications being built on Ethereum.”
Likewise, Evolve Fund Group Inc. plans to start the trading of its Ether EFT (ETHR) on April 20 on the Toronto Stock Exchange. Raj Lala, the CEO and president at Evolve, stated: “We are very excited to have launched one of the world’s first bitcoin ETFs and now plan to launch the world’s first Ether ETF. Similar to bitcoin, investors will now be able to trade Ether as simple as buying shares through their bank or brokerage. ETHR will provide daily liquidity, transparency and security through a regulated ETF structure.”
Purpose Ether ETF is designed to provide investors with exposure to Ether by investing directly in physically settled ether. The Purpose Ether ETF is set to offer three classes of units: US dollar units (ETHH.U), Canadian dollar non-currency hedged units (ETHH.B), and Canadian dollar currency-hedged units (ETHH).
EFTs are investment vehicles that allow investors to purchase shares that represent a certain asset – this case, Ether. Investors can trade them continuously throughout the day without worrying about owning the asset themselves or holding cryptocurrency, like storage.
In other words, Ether ETFs would allow investors to buy into the ETF without going through the complicated process of trading Ether itself. Furthermore, since holders of the ETFs would not be investing in Ether directly, they would not have to worry about the complex storage and security procedures required of crypto investors.
Bitcoin ETF Problem in the US
While the neighbouring US regulators are still yet to approve Bitcoin ETFs, Canada has appeared to be progressive toward the regulated cryptocurrency instruments. In early February, Canada approved its first Bitcoin ETF which witnessed a huge demand from investors. And recently, Canadian regulators approved two Bitcoin ETFs that allow investors to take short positions in the cryptocurrency.
A Bitcoin ETF in the United States is still a long way from being approved. Currently there is long list of prominent companies (such as NYDIG Asset Management, Valkyrie Digital Assets, Galaxy Digital, SkyBridge Capital, VanEck, Cboe, WisdomTree, and Fidelity Investments) applying to the SEC for Bitcoin ETF approval. But the US Securities and Exchange Commission (SEC) has repeatedly rejected applications for firms that intend to launch Bitcoin ETFs.
The SEC claims that Bitcoin is traded on unregulated exchanges, thus leaving it susceptible to manipulation and fraud. However, there are still hopes that the new SEC boss Gary Gensler could change the regulatory agency’s attitude towards the novel investment product.
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