Two months after Canada approved the first Bitcoin ETF, the North American country has again taken a big step in the adoption of cryptocurrencies. On Friday, regulators approved the first Ethereum ETFs in North America. And what is better than an ETF approval? Two ETFs approved on the same day.
This is a new spin on the Bitcoin ETF (BTCC ticker) in which Toronto-based Purpose Investments were approved first before others followed in the days and weeks after. This gave Purpose an edge over other ETF products. To amend this, Canadian regulators approved the Purpose Ether ETF and the CI Global Asset Management ETF on the same day.
US Companies Committed to Ethereum ETFs
The purposeful investment has revealed that the US exchange Gemini will act as its custodian, storing ETH in cold storage. CIBC Mellon Global Securities will act as the fund manager. ETFs will be offered in three unit classes: Canadian dollar units (ETHH), US dollar units (ETHH.U) and Canadian dollar non-currency units (ETHH.B). Ether Capital Corporation will offer consultations to the management company.
Upon 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 in today's society."
The CI Galaxy Ethereum ETF debuts on April 20 on the Toronto Stock Exchange. Galaxy Digital Asset Management of Michael Novogratz and CI GAM will act as sub-advisors. ETFs will be offered in two classes of units: Canadian dollars (ETHX.B) and US dollars (ETHX.U).
The approval is timely as the Ethereum price barely reached $ 2,500, a new all-time high. Ethereum has also attracted institutional investment in recent weeks with Rothschild Investment, the latest company to make a purchase. In addition, the network has just undergone a major update: the Berlin fork. This latest update will see you reduce gas rates and change the type of transactions on the block.
First ETF approved in the US.
As Canada spreads into altcoin ETFs, the US is still waiting for the first Bitcoin ETF. This year, the SEC has received more than 9 applications from companies including Scarramuci's VanEck and SkyBridge Capital. Many experts are optimistic that after Canada's success, the US watchdog is inclined to follow suit. With a larger market, a US approved Bitcoin ETF would be an instant hit.
A Bitcoin ETF will be at the top of the agenda of the new SEC Chairman Gary Gensler. He has been bullish on the potential of cryptocurrencies, referring to them as catalysts for change.