The first ever ethereum ETFs are set to begin trading on the Toronto Stock Exchange in Canada on Tuesday as the cryptocurrency craze remains heightened.
The country has been a first mover when it comes to allowing cryptocurrency ETFs, with the first North American bitcoin ETFs launching earlier this year on the Toronto Stock Exchange. Those ETFs have quickly amassed more than $1 billion in assets under management.
Three ethereum ETFs received approval from the Ontario Securities Commission last week, setting them up for their first trades later today. Demand could be strong, given that Ethereum is the second largest cryptocurrency by market value, after bitcoin.
The three ethereum ETFs include: Purpose Ether ETF, CI Galaxy Ethereum ETF, and Evolve Ether ETF. Only US investors that have brokerage access to the Toronto Stock Exchange will be able to buy and sell the ETFs.
“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,” said Purpose Investments founder and CEO Som Seif in a statement.
Demand for cryptocurrency ETFs are strong, as it allows investors to gain exposure to the asset class within their portfolios, lowers trading costs, and removes the hassle of having to secure and store the cryptocurrency.
But the US Securities and Exchange Commission has been slow to approve the launch of a US bitcoin or ethereum ETF, as it continues to sit on several applications from firms like Fidelity and Grayscale. One expert thinks the first US-based crypto ETF will be approved and launch later this year.
For the Canadian ethereum ETFs, price wars are already heating up in a bid to woo investors. The Purpose Ether ETF will charge a management fee of 1%, while CI Galaxy and Evolve’s ethereum ETFs will charge 0.40% and 0.75%, respectively.
Ethereum is up 193% year-to-date, well ahead of bitcoin’s year-to-date gain of more than 100%, but significantly less than Dogecoin’s year-to-date gain of more than 8,000%.