Purpose Investments Has Just Launched The First ETH ETF

Purpose Investments has just launched the first-ever Ethereum ETF after it got approved by the Canadian Securities regulator as we can see more in our latest etheruem news today.

As the first ETH-based ETF in the world, the fund started trading under the ticker ETHH on the Toronto Stock Exchange. The move by the asset manager came after the successful Bitcoin ETF which saw massive success and hit over $1 billion assets under management in the first weeks of launching. As per the analytics site Glassnode the holdings reached 18,522 BTC a few days ago.

Purpose Investments has launched the Purpose Ether ETF fund which will invest directly into the physically settled Etheruem that is a change from the derivatives-based funds like the Grayscale Ethereum trust. This allows the ETF to reflect the price of Ether without premiums on the net asset value:

 “The Ether in the ETF is held in secure, offline storage, which is also known as “cold” storage because it is not actively connected to the internet. We do use an online or “hot” wallet, but only for transitory purchases when the ETF is buying and selling Ether. The ETF only invests in and holds 100% physically settled Ether.”

The fun’s AUM now sits at $26.46 million CAD and it is priced based on the Tradeblock ETX’ Ether spot price. The shares of ETHH represent 0.00355048 ether with the management fee fixed at 1.00%. In a press release, Purpose’s CEO Som Seif remained quite confident that the Purpose latest ether fund will be even more successful than the Bitcoin counterpart:

“We believe Ether, a leading digital asset with perhaps the most potential among all the blockchain technologies, is poised to continue its growth trajectory and as both an important utility technology and broader adoption as an investment asset. When we launched the Purpose Bitcoin ETF, we knew we wanted to be the leader in the cryptocurrency investment space. By following up the world’s first Bitcoin ETF with the world’s first Ether ETF, I feel like we’re there.”

As recently reported, Canada has been quite welcoming of  BTC in traditional markets and a third bitcoin ETF in Canada is about to be launched in less than a few hours. The Bitcoin ETF has been approved by Canadian securities regulators as the CI Global Asset Management prepares their own BTC-based offering.