The world’s first Ethereum-based ETF debuts in Canada… with some problems
Digital investment manager 3iQ on Thursday launched a product that will allow traders and investors to gain exposure to ETH
The first Ethereum-based fund to be listed on a major global exchange opened for trading on Thursday, not without a few hiccups. Listed on the Toronto Stock Exchange, The Ether Fund (TSX:QETH.U) opened at $10.80 per share after completing an IPO in which $76.5 million was raised.
„It’s finally available to brokerage accounts and pension funds….
The Ether Fund (TSX:QETH.U) is the first ETH fund to be regulated and listed on a well-known stock exchange.“
The fund was not available when trading opened, officially due to a delay in the closing of the IPO prospectus: this caused considerable concern among interested traders. Trading actually started two hours late and 345,331 shares were traded Bitcoin Trader over the rest of the day. The fund hit a high of $11.48 before closing at $11.02. That represents a 2.5 percent gain on a trading day when ETH’s spot value fell about 0.5 percent, creating a premium on QETH.U’s share price.
The fund was launched by Canada’s largest digital investment manager, 3iQ, so that traders and investors can gain exposure to Ethereum without having to buy, hold or sell ETH themselves. At an average price of $565 per ETH, each share of QETH.U represented about 0.0187 ETH at the start of the day. The coins backing the fund’s shares are held by Gemini Custody, the well-known exchange’s crypto custody subsidiary.
„This is huge news for Ether!“
The Ether fund joins 3iQ’s other crypto stock, the Bitcoin Fund (TSX:QBTC), which has been listed since late October. In a report published earlier this month, 3iQ was ranked as the third largest public digital fund. In the press release accompanying the opening of QETH.U trading, the company stressed the importance of offering crypto-based securities on an accredited stock exchange:
„Having access to digital assets […] can be daunting, expensive and inconvenient. 3iQ offers investors convenient and simple products to gain exposure to digital assets.“
In December 2017, the first US ETH-expressed fund, the Grayscale Ethereum Trust, was opened and listed on the OTC Pink Market. According to Grayscale’s CEO, the fund saw an increase in inflows in the third quarter of this year: we may be witnessing the emergence of a new group of „Ethereum first“ investors.