The trading of the first Ethereum ETFs on the Toronto Stock Exchange in Canada is set to begin on Tuesday as the trend of the cryptocurrency remains heightened.
Canada has been the first mover when it comes to permitting cryptocurrency ETFs. It has become the first North American country to launch bitcoin ETFs on the Toronto Stock Exchange.
The ETFs have quickly accumulated assets under their management adding up to more than $1 billion. At the moment, only three ETFs have been approved by Ontario Securities Commission that qualifies them to begin trading on Tuesday.
The demand for Ethereum could be strong given that the cryptocurrency is the second in the market after bitcoin. The three ETFs set to begin trading include Purpose Ether ETF, Evolve ETF, and CI Galaxy Ethereum ETF.
US investors will only be able to buy or sell the ETFs if they have access to the Toronto Stock Exchange brokerage. In a statement, Som Seif, Purpose Investments founder, and CEO said that the ether and Ethereum ecosystem is one of the exciting technology of today despite getting less attention.
The ETFs are in high demand due to the advantages they accrue to investors. Trading in through ETFs exposes investors to assets classes in their portfolios. The trading fee is also low and the investors do not need to struggle to secure their cryptocurrency store.
In the US, the Securities and Exchange Commission has been slow in approving the launching of Ethereum and bitcoin ETFs. Several applications have been made by firms, experts believe that the application will be approved sometime later this year.
In Canada, the ETFs’ price wars are gaining momentum in an attempt to attract investors. Purpose Ether ETF will charge a 1 percent management fee, Evolve Ethereum ETF will charge 0.75 percent while CI Galaxy will charge 0.40 percent.