The world’s first ethereum Exchange Traded Fund (ETF) is undergoing an Initial Public Offering (IPO) at the Toronto Stock Exchange (pictured) under the ticker of QETH.U.
“The minimum size of the Offering is US$20,000,009.50 and the maximum size of the Offering is US$107,500,000.00. The closing date of the Offering is anticipated to be December 10, 2020,” said 3iQ Corp, a Canadian investment fund manager specializing in digital assets since 2012.
The ethereum ETF aims to provide the opportunity for long-term capital appreciation by offering exposure to eth and the daily price movements of the U.S. dollar price of eth.
“The syndicate of agents for the Offering is being led by Canaccord Genuity Corp. and includes Richardson Wealth Limited, Echelon Wealth Partners Inc., Leede Jones Gable Inc., Mackie Research Capital Corporation and PI Financial Corp,” they say with 3iQ being the investment manager and portfolio manager of the ETF.
They launched a bitcoin ETF just this summer at the Toronto Stock Exchange and have already risen to be the second biggest stock trading bitcoin provider after Grayscale.
It handles $2.3 million in daily volumes for QBTC-U with a market cap of $167 million as of November, both an increase of more than 50% over October.
3iQ itself says it has more than $300 million in assets under management, with the digital assets investment firm further offering a private fund, the 3iQ Global Cryptoasset Fund, which is limited to accredited investors and holds bitcoin, eth and litecoin.
Demand for eth has clearly reached the point where they are now launching a public eth specific ETF, beating America to the task and also Europe where there are numerous Exchange Traded Notes (ETNs), but not yet a European crypto fund.
Outside of USA however the crypto stock options have increased significantly in the past two years with non Americans having numerous options while Americans are stuck with the loopholed premium Grayscale products.
Yet expectations are high the new administration will give the greenlight amidst growing demand by institutional investors that now in Canada can add eth to their investment portfolio just like any other stock and could do so for bitcoin since July.