- Canada has approved two Ethereum ETFs on the same day, allowing new investors exposure to the second-largest cryptocurrency in the world.
- The approval follows massive success for Bitcoin ETFs with the first approved Bitcoin ETF recently surpassing $1 billion in assets
Two months after Canada approved the first Bitcoin ETF, the North American country has yet again made a major stride in the adoption of cryptocurrencies. On Friday, regulators approved the first Ethereum ETFs in North America. And what’s better than one ETF approval? Two ETFs approved on the same day.
This is a new twist from the Bitcoin ETF (ticker BTCC) in which the Toronto-based Purpose Investments was approved first before others followed in the days and weeks after. This gave Purpose an advantage over other ETF products. To amend this, Canadian regulators approved both the Purpose Ether ETF and CI Global Asset Management ETF on the same day.
US Firms engaged with Ethereum ETFs
Purpose investment has disclosed that U.S exchange Gemini will act as its custodian, storing ETH in cold storage. CIBC Mellon Global Securities will act as the fund administrator. The ETFs will be offered in three classes of units- Canadian dollar units (ETHH), US dollar units (ETHH.U) and Canadian dollar non-currency units (ETHH.B). Ether Capital Corporation will offer consultation to the management firm.
Super excited to announce we will be launching the first Ether ETF directly owning Ether in the World next Tuesday on the #TSX under #ETHH and #ETHH.B and .U. Will add to the successful Bitcoin ETF #BTCC #Ether @PurposeInvest https://t.co/i9D49RfQUg
— Som Seif (@somseif) April 16, 2021
Following the approval, Purpose founder and CEO, Som Seif, stated,
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.
The CI Galaxy Ethereum ETF debuts on April 20 in the Toronto Stock Exchange. Michael Novogratz’s Galaxy Digital Asset Management and CI GAM will act as the sub-advisor. The ETFs will be offered in two classes of units- Canadian dollars (ETHX.B) and U.S. dollars (ETHX.U).
The approval is timely as Ether prices just hit $2,500, a new all-time high. Ethereum has also in recent weeks attracted institutional investment with Rothschild investment the latest firm to make a purchase. Furthermore, the network just underwent a major upgrade- the Berlin fork. This latest upgrade will see it reduce gas fees and change the type of transactions on the block.
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First US Approved ETF
As Canada extends into altcoin ETFs, the US is still waiting for the first Bitcoin ETF. This year the SEC has received more than 9 applications from the likes of VanEck and Scarramuci’s SkyBridge Capital. Many experts are optimistic that following Canada’s success, the US watchdog is inclined to follow suit. With a bigger market, a US approved Bitcoin ETF would be an instant success.
A Bitcoin ETF will be on top of the agenda for the new SEC chairman- Gary Gensler. He has been optimistic about the potential of cryptocurrencies, referring to them as catalysts for change.