The first Ethereum exchange-traded fund (ETF) has launched on the Toronto Stock Exchange. The official listing on the Ether Fund came after the 3iQ Ether fund raked in well over $75 million in funding. The fund got approved very recently, on the 3rd of December, and it was disclosed a while later, that the funding capacity (the estimated amount that the fund could raise) was a staggering $107.5 million. For a country that is seeing its first Ether ETF, this is an indicator that the interest rate in both Ethereum and ETFs, is skyrocketing within the Canadian cryptocurrency scene.
The Ether fund, which is similar to an ETF-like tradeable asset can be traded just like any other stock on the exchange, and is already trading under the ticket tag QETH.U and started trading at $10.80 per share. Unsurprisingly, trading volume for the first day reached a staggering $310,000. The funds will be managed by Gemini custody.
3iQ’s managing director Tom Lombardi opened up to a media outlet about its company’s goals, saying “Our charter at 3iQ is to bring digital assets to the listed markets in a convenient and familiar fund format. The Ether Fund (TSX:QETH.U) is the country’s first regulated and major exchange-listed ETH fund and is the next step in our company’s journey. Both the Bitcoin Fund and The Ether Fund can also be held in Canadian registered retirement accounts.”
3iQ is one of Canada’s top digital asset investment management firm. The company was also responsible for proposing to raise the first public Bitcoin ETF (Bitcoin Fund) in Canada after gaining approval from regulatory bodies in April 2020. Under its asset management belt, the investment firm is in charge of more than C$400 million. Like 3iQ, Grayscale is also pioneering digital asset investment in the United States. In 2017, Grayscale launched the first American ETH-backed fund called the Grayscale Ethereum Trust. After getting listed on the OTC pink market, the firm noticed an increase in the inflow of funds, which continued till the third quarter of the year.
On the 2nd of December, Grayscale split its assets and made another purchase of $58 million Ethereum and $266 million worth of Bitcoin on the 10th of December. After working with the SEC to increase transparency and strengthen its regulatory policies, the company secured over $1 billion in its overall cryptocurrency investments. Grayscale’s managing director later revealed that there was indeed a rising interest in ETH investment as new groups of investors were hitting the market.