The Ontario Securities Commission (OSC) from Canada has approved four Ethereum Exchange Traded Funds (ETFs) to be launched on April 20, 2021. The financial products were petition by CI Global Asset Management, Galaxy Digital, Purpose Investments, and Evolve ETFs.
Three months ago, Canada became the first country in North America to approve a Bitcoin ETF. At that moment, Purpose Investments received a “massive” advantage when it could launch its Bitcoin ETF a day before the competition, as stated by Bloomberg Intelligence ETF expert James Seyffart.
Now, the regulator seeks to create a “fairer” competition. The ETFs management fees will also be highly competitive with CI Galaxy offering 0.40%, Purpose 1%, Evolve 0.75%. Seyffart added:
That said the mgmt fees aren’t the expense ratio, so we won’t know the “Total” costs of each for some time.
CI Global Asset Management has called its ETF the “world’s first” based on Ethereum with the “world’s lowest management fee”. The product is aims for investors to benefit from Ethereum’s price appreciation and the growth of its ecosystem. Steve Kurz, Partner and Head of Asset Management at Galaxy Digital said:
We are thrilled to continue building our advisory relationship with CI. The CI Galaxy Ethereum ETF gives investors a simplified path to benefit from the explosion of decentralized applications being built on Ethereum.
At the start of April, Canada Bitcoin ETF’s have a record inflow streak, as stated by Senior ETF Analyst for Bloomberg Intelligence Eric Balchunas. The financial product affected the performance of others in the U.S., like Grayscale Bitcoin Trust (GBTC).
— Eric Balchunas (@EricBalchunas) April 2, 2021
The GBTC traded with a negative premium during March. Its investors called for actions and some proposed to modified GBTC’s traded mechanism. The Grayscale Ethereum Trust could suffer the same fate and attract the attention of institutional investors in the U.S. looking to gain exposure to the cryptocurrency.
Thus, the Securities and Exchange (SEC) Commission faces new pressure. In the meantime, 9 Bitcoin ETF petitions pile up with the U.S. regulator. Their approval seems, for some experts, imminent and could follow Canadian regulator steps, to allow their launch at the same time.
The price action for ETH seems to be cooling down during the weekend after it broke several ATH in previous days. ETH fundamentals remain strong with an increase of supply accumulation, as indicated by Lewis Harland from Decentral Park Capital.
— Lewis Harland (@_LewisHarland_) April 17, 2021