Canada has been making a strong case to become the number one cryptocurrency hub in North America. After approving three Bitcoin exchange-traded funds (ETFs) earlier this year, securities regulators in Canada have now approved two Ethereum ETFs, and they are set to launch on the stock exchange next week.
Three Ethereum ETFs to go live in Canada next week
Securities regulators in Canada have approved three Ethereum exchange-traded funds, making them the first country to do so in North America. The Ethereum ETFs are expected to go live on the Toronto Stock Exchange (TSX) next week.
The senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, announced the approval of the three ETFs yesterday. “Update: Canada is approving THREE Ethereum ETFs to launch on Tuesday. Seems more fair than giving Purpose a crucial head start again. SEC should/prob will do same here.”, he tweeted.
Purpose Investments, CI Global Asset Management, and Galaxy Digital all received approvals this week. As a result, the ETFs will start trading on the stock exchange on Tuesday. Som Seif, founder and CEO of Purpose Investments, stated that “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. By launching the first ETF in the world that directly owns and provides exposure to ether, we are enabling every investor to have access to this unique opportunity and ecosystem.”
The Purpose ETF is designed to provide investors with exposure to the second-largest cryptocurrency by investing directly in physically settled ether. It will be available in three classes of units, including; Canadian dollar non-currency hedged units (ETHH.B), Canadian dollar currency-hedged units (ETHH), and U.S. dollar units with ticker units (ETHH.U).
Canada becoming optimistic about cryptocurrencies
Canada is slowly becoming the most advanced cryptocurrency-friendly country in North America. In February, regulators approved three Bitcoin ETFs. They have followed that with another three Ethereum ETFs, indicating their confidence in the new asset classes.
In contrast, the United States has yet to approve any Bitcoin ETFs. The US Securities and Exchange Commission has rejected multiple Bitcoin ETF proposals in the past. Even so, it is now reviewing nine Bitcoin ETF proposals. There is optimism that under Gary Gensler’s leadership, it will approve some of these applications.