The Canadian Securities regulators have approved the first ever direct custody Ether ETF in the World through Purpose Investments.
The Purpose Ether ETF will offer exposure to physically settled Ether tokens. Investors will be able to invest through Canadian dollar hedged units, Canadian dollar non-currency hedged units, and U.S dollar units.
Ethereum ecosystem spurring adoption
CEO and founder of Purpose Investments, Som Seif believes that while bitcoin gets a lot of attention, ethereum is the one of most exciting new technology visions in today’s 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.” Seif stated.
The Purpose of the ether ETF is to offer investors the chance to invest directly into physically settled ether. Mitigating the risk of having investors store the assets in their own wallets.
The company will be assisted by Ether Capital Corporation as a consultant to Purpose Investments. Speaking about the partnership related to the new ether ETF, CEO of Ether Capital Brian Mosoff stated that “We focused on addressing key issues relating to Ether custody, transactions and liquidity. Ether is the cryptocurrency we believe has the most potential for the future and is where our expertise really lies. Building this ETF is not only a natural extension to the Purpose Investments digital asset lineup, but a natural fit for us at Ether Capital working alongside Purpose.”
Ethereum holdings will be stored in cold storage. Purpose Investments will utilize Gemini Trust Company to assist in the storage process. The same method the company uses for its bitcoin ETF.
Bitcoin ETF popularity sees Ether ETF following
The move now means Purpose Investments has the world’s first bitcoin and ethereum ETFs. Purpose Investments launched the bitcoin ETF back in February 2021. The bitcoin ETF has already attracted more than $1.4 billion in assets since its launch.
The latest ETF will likely spur more adoption among investors looking to gain access to cryptocurrency markets. The news comes several days after Coinbase successfully completed its public listing on the Nasdaq.
Following a first quarter that has seen the cryptocurrency market rally to new highs, investors will be looking to get in on the action through less risky exchanges.