Canada Licenses Three New Ethereum ETF
The buzz around crypto Exchange-Traded Funds (ETFs) started the last February when Canada became the first country to license the operations of Bitcoin ETFs, much to the delight of the crypto community in the North American nation. Unfortunately, that single action from the Canadian regulators has prompted the American crypto community to continue to make demands from the U.S Securities and Exchange Commission (SEC) to license Van Eck and other crypto firms requesting the license to offer the Bitcoin exchange products. However, Canadian regulators have now taken a step further, as they have now licensed three new Ethereum ETFs in the country.
Purpose, Evolve, and CI Global all get Ethereum ETF license
Like every typical exchange-traded product, crypto ETFs give investors exposure to the cryptocurrency without owning one. Another advantage of the exchange products is that they also allow investors to buy the underlying cryptocurrency they manage without the need for a typical crypto exchange. Investors are giving an opportunity to track and manage their assets under the custody of the ETFs. However, while the American crypto community continues to await the launch of their first crypto ETF, Canada is now the Northern American nation that plays host to multiple Bitcoin ETFs and now three new EThereum ETFs.
When Purpose and Evolve both launched their Bitcoin ETF in February, they were met with wide applause, as assets under their management rose to astronomical figures in less than 24hours of operation. However, it will be expected that their new Ethereum ETF will also be met with rosy excitement, as the Canadian crypto community has taken to social media to express their delight at the new ETFs. According to the official report on Twitter, the new Ethereum ETFs will be operating on the 20th of April, 2021.
What will be expected?
Much like the excitement that was met with Purpose BItcoin ETF, which saw assets under the management of the crypto ETF reach $1.3 billion barely one week after its operation, Purpose Ethereum ETF is expected to be successful. The firm has been well known across Canada to understand the crypto business beyond shores, and to gain the public trust again, will not be an issue for them. On the other hand, while Evolve Bitcoin ETF did not get the rosy applause like that of Purpose, it is worthy to note that the crypto ETF was very successful.
The Evolve Bitcoin ETF also recorded at least $100 million of assets under its management in their first week of operation and was able to gain popularity by offering clients a reduced management fee compared to Purpose’s offering. That strategy had made their Bitcoin ETF offering a success, and their Ethereum ETF is also expected to ride on the back of that success.
However, CI Global management fees are the least compared to both Purpose and Evolve, and they have been able to attract more customers through their bespoke service offerings. However, many analysts believe that next week will be a record-breaking one in Canada, as the new Ethereum ETFs are set to be met with wide applause.
