After a massive success with the Bitcoin exchange-traded fund (ETF), the Canadian securities regulator has now approved an Ethereum ETF, which happens to be not only the country’s but the world’s first direct custody Ethereum ETF.
The ETF has been launched by Purpose Investments, the same fund management company to launch and manage the country’s first Bitcoin ETF.
Commenting on the altcoin ETF, Purpose Founder and CEO, Som Seif, said: “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.”
Friday’s announcement elaborated that the ETF will directly invest in Ether and will offer three classes of units: Canadian dollar currency-hedged units (ETHH), Canadian dollar non-currency hedged units (ETHH.B) and US dollar units (ETHH.U).
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Purpose will manage the ETF, receiving consultation from Ether Capital Corporation. New York-based Gemini will be the custodian of the held digital assets, and CIBC Mellon Global Securities Services Company will act as the fund administrator.
“Our role in Purpose Ether ETF is to help make sure the more complex aspects of cryptocurrency ownership and transactions fit together,” Ether Capital CEO, Brian Mosoff, said. “We focused on addressing key issues relating to Ether custody, transactions and liquidity.”
The ETF will track the daily spot price of the TradeBlock ETX Index.
Making Altcoin Investment Easier
While the neighboring US regulators still cannot make up their minds in approving Bitcoin ETFs, Canada has turned out to be progressive towards the regulated crypto instruments. The country approved its first Bitcoin ETF earlier in February, which witnessed a massive demand from investors.
Most recently, the Canadian regulator approved two Bitcoin ETFs by Horizons, one of which will allow investors to take short positions on the digital currency.