Purpose Investments, an asset management company located in Toronto, Canada has secured approval from the relevant regulators in Canada to launch an Ethereum ETF. This makes it the first ETF for the second largest crypto asset by market cap globally. The company made the announcement in its press release of 16th April.
What Does This Ethereum ETF Mean?
This means that investors on the Ethereum ETF can invest in ETH tokens directly, which was built on the Ethereum network.
This is happening just after Ontario Securities Commission approved its Bitcoin ETF application sometime in February.
It should also be noted that the value of Ether has hit $2,500 in recent times and the value of its market cap is now close to $300 billion.
Purpose CEO referred to Ethereum as a very innovative technology and one of the best at the moment. He went further to add that although Bitcoin is very popular being the first cryptocurrency, Ethereum and Ether present exciting technologies to invest in.
The company’s Bitcoin asset surpassed $1 billion mark and its ETH ETF is expected to follow in the same direction.
Purpose Investments provides investors a safer exposure to crypto with the Ethereum ETF as they would not have to save their Ether in a crypto wallet. Just like the Bitcoin ETF and other physically backed assets like gold and silver, the Ethereum ETF will also be backed by physical settled Ether.
Purpose investments will be partnering with Ether Capital Corporation who would be their special consultants while Purpose serves as manager for the ETF.
With the Ethereum ETF and Bitcoin ETF, Canada is now ahead of the US in crypto related developments.