Less than a month after Evolve became the second company to receive approval from Canadian regulators to list an exchange-traded Bitcoin (BTC) fund, Evolve plans to launch an ETF product from Ether (ETH) in Canada.
The company has filed a preliminary prospectus with Canadian regulators to approve trading in an Ether ETF product, according to a press release on Tuesday.
According to the announcement, if the Ether ETF is approved, it will trade under the ticker “ETHR” and track the Ether-Dollar reference rate (ETHUSD_RR) provided by CF Benchmarks. The CME ETH futures contract also uses the same reference price.
The announcement also indicates that the proposed Ether ETF will offer US dollar and Canadian dollar denominated unhedged shares.
Commenting on the tentative filing, Evolve CEO Raj Lala noted that the company looks forward to giving Canadian investors exposure to another cryptocurrency through the ETF market.
For Elliot Johnson, the company’s chief operating officer and chief investment officer, the company chose an Ether ETF because of the importance of the second largest crypto by market capitalization. He added:
“Ether is the building block for a revolution in digital finance that is still in its infancy. […] Ethereum is the most actively used blockchain, with Ether being used to pay for transaction fees and computing services. “
If approved, the ETHR will be the second crypto ETF from Evolve’s stables after its Bitcoin ETF product “EBIT” launched in February.
As previously reported by Cointelegraph, Bitcoin ETF trading made an explosive debut in Canada. The Purpose Bitcoin ETF reached over half a billion dollars in assets under management less than a week after its inception.
In the past few days, however, there has been a noticeable drop in trading volume due to the significant volatility in BTC prices.
Grayscale Investment’s Graysacele Bitcoin Trust product saw premiums decline to record lows while trading in Canadian Bitcoin ETFs rose sharply.
According to analysts at JPMorgan Chase, there is a direct link between the explosive trading in Canadian Bitcoin ETFs and the decline in the GBTC premium.
