3 ETFs holding Ether will start trading. What to know.

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While the US market awaits its first Bitcoin exchange-traded fund, Canada – which has already approved a few Bitcoin ETFs – has moved on to the next thing.

Last week, the Ontario Securities Commission approved the launch of three ETFs that offer investors direct exposure to Ether, the second-largest cryptocurrency by market capitalization after Bitcoin. On Tuesday, three funds owned by Ether are expected to start trading on the Toronto Stock Exchange: Purpose Investments’ Target Ether ETF (ticker: ETHH), CI Global Ethetum ETF (ETHX) from CI Global Asset Management and Evolve Ether ETF from Evolve ETFs. (ETHR).

The approvals come two months after Canada launched its first Bitcoin ETF, the

Purpose of Bitcoin ETF

(BTCC). That ETF has already amassed C $ 1.4 billion ($ 1.1 billion) since its launch, proving that the investor has a huge demand for a way to hold cryptocurrencies without the hassle of securing them and store, as well as the ability to integrate the emerging asset class into portfolios and trade at lower costs.

“While bitcoin tends to attract a lot of attention because it was the first major cryptocurrency, ether and the Ethereum ecosystem are one of the most exciting new technology visions in society,” said Som Seif, founder and CEO of Purpose Investments, said. in a statement.

But for a space that is as competitive – and some might say, homogeneous – as cryptocurrency funds, cost is one of the most important factors.

Days after the approval of Purpose Bitcoin ETF in February, which charges a management fee of 1%, is competitive

Develop Bitcoin ETF

(EBIT) followed suit and reduced management fees to 0.75%. The

CI Galaxy Bitcoin ETF

(BTCX), which hit the market in early March, is asking for an even lower 0.40%. 3iQ took part in the game this week and the

3iQ CoinShares Bitcoin ETF

(BTCQ) on Monday with a management fee of 1%.

Management costs are not the only thing investors will have to pay. A fund can also have additional costs that cover the day-to-day operations, taxes and other expenses. The Target Bitcoin ETF has promised that the total cost, or the management expense ratio, will not exceed 1.50%. The 3iQ fund said it would waive any expenses of more than 1.25%. The Evolve and CI Galaxy Bitcoin ETFs did not specify any such limits in their prospectus.

If there is any indication of strong demand for Bitcoin ETFs, the upcoming Ether ETFs are likely to see a rush of cash inflows. Unlike the Bitcoin ETFs, where the first one approved had a significant advantage for the first time, all three Ether ETFs will start at the same time and start trading on equal playing field.

Like their Bitcoin counterparts, the Purpose Ether ETF will charge a 1% management fee. Evolve’s version costs 0.75% and the CI Galaxy Ethereum ETF costs 0.40%. But a price war has already begun: to attract new investors, Evolve announced over the weekend that it will waive the full management fee until May 31, which will make its Ether ETF essentially free. The management fee will return to 0.75% after May 31, the company said, plus applicable sales tax.

Ether has risen with Bitcoin over the past year amid the cryptocurrency mania. It has fallen by 8% since last Thursday following the public listing of the cryptocurrency exchange

Coinbase

Global (COIN).

Write to Evie Liu at [email protected]