In the crypto gold rush – Canada allows the first three Ethereum ETFs in one fell swoop
North America will soon get more crypto investment products in the form of three new ETH index funds.
While the USA has not yet made the decision to allow crypto ETFs, a real gold rush for index funds for crypto currencies has broken out among its northern neighbors in Canada. The Canadian supervisory authorities have now waved through three more “Exchange-Traded Funds” (ETFs) for Ethereum (ETH) in just one day.
The three corresponding Ethereum ETFs from the investment firms Purpose Investments, Evolve ETFs and CI Global Asset Management were all approved by the Canadian authorities yesterday in one go. These are also the first ETH index funds in North America and one of the first Ether ETFs in the world.
observer suspectthat the simultaneous approval was aimed at preventing Purpose’s ETF from getting an “unfair advantage” over the competition. A not unfounded assumption, because a few weeks ago Purpose had the first Bitcoin ETF in North America brought on the market, which immediately enjoyed great popularity and was able to claim large market shares for itself, while other investment firms had to wait for approval.
How considerable the advantage for the “first mover” actually is can be seen from the fact that the Purpose ETF was able to achieve an investment volume of 1.3 billion US dollars in a very short time, whereas the Bitcoin- approved just two days later. The Rival Evolve Fund Group’s ETF was only able to raise USD 100 million in the same period, although the management fee for the index fund is 25% lower than that of Purpose.
A Bloomberg reporter confirms that the three new Ethereum ETFs will start trading on the Canadian stock exchange on April 20th.
Updating yet again … @CIGlobalAsset & @GalaxyDigital just got approval for their #Ethereum ETF alongside @PurposeInvest‘s. I THINK both will begin trading on … wait for it … 4/20 – Amazing @elonmusk https://t.co/SNFY4jNpUa pic.twitter.com/4ZUSCJEVQ5
– James Seyffart (@JSeyff) April 16, 2021
The Canadian stock market has so far shown a very lively interest in crypto investment products, which is probably also due to the fact that the corresponding ETFs are the only crypto index funds that American investors can access. In the USA there are Bitcoin mutual funds, above all the influential GBTC from Grayscale, but index funds are usually a more cost-effective investment product because the management fees for them are significantly lower. There are also other properties that make ETFs a more attractive investment opportunity.
This has now resulted in a real “gold rush”, because investors can invest in the relevant crypto currencies via the stock exchange. So it’s hardly surprising that Purpose’s Bitcoin ETF made a crashing debut in February.