Canadian authorities have authorized the launch of the world’s first Ethereum ETF.
The licensed company, Purpose Investments, a Toronto-based asset management company, has obtained approval from Canadian securities regulators for the launch of an Ethereum ETF. A company statement said yesterday that the ETF will give investors exposure to the asset, allowing them to invest in physically liquidated Ethereum.
Purpose Investments CEO and founder Som Seif said that this will give many investors the opportunity to invest in Ethereum, which he describes as impressive.
“Although Bitcoin tends to get a lot of attention because it was the first major cryptocurrency, Ethereum represents one of the most exciting new technology visions in society today. By launching the world’s first ETF that owns and provides direct exposure to Ether, we are allowing each investor to have access to this unique opportunity and ecosystem. ”
The ETF will offer three classes of units, namely: units hedged in Canadian dollars (ETHH), units not hedged in Canadian dollars (ETHH.B) and units in United States dollars (ETHH.U).
Two ETFs in two months
The world’s first Bitcoin ETF was launched in Canada about two months ago. It is worth mentioning that the ETF was launched by the same company, Purpose Investments. The company will now run two ETFs for the world’s top two cryptocurrencies and help investors enter the market without the associated risk of investing in cryptocurrencies.
Purpose Investments will collaborate with the Gemini Trust Company for custody. He will also work with CIBC Mellon Global Securities Services Company as a fund manager. This is to increase investor confidence in their investments.
Canada taking the lead in crypto development
A few years ago, no one thought that Canada would launch the first Bitcoin ETFs. However, that is the case today, while the United States, which has the largest number of cryptocurrency initiatives, has no ETF yet.
As the regulatory climate in the USA is not conducive to such developments, Canada has taken the lead and has become a crypto titan to contend with. The Bitcoin ETF launched in February this year is considered one of the most successful ETFs in history. It already has $ 1.4 billion in assets within two months of its launch.