The first Ether ETF is yet to be launched but the price wars have already begun among the three firms namely Evolve Funds Group, Purpose Investments Inc., and CI Global Asset Management who all have filed for an Ether-based exchange-traded fund. Evolve group has announced a 0.75% on management fee until May 31, making it cheaper than the other two rival firms.
North America has become the hub for crypto-based exchange-traded funds (ETF) in recent times becoming the first nation to approve a Bitcoin ETF in the form of Purpose Group. When the American regulators are yet to approve a Bitcoin ETF, North America is all set to approve a couple of Ether ETFs as well. A similar price war began for Bitcoin ETF as well when the Purpose Group rival started offering a similar discount on their product.
Crypto ETFs Going Mainstream
The demand for Bitcoin ETFs has been proposed as early as 2017 while the first official one was launched this year. Canada has approved the world’s first Ether ETF as well. The success of Purpose Group Bitcoin ETF that has amassed over a billion-dollar worth of BTC since its launch a couple of months ago is seen as a catalyst for the American regulators to approve the first ETFs in the US as well. A total of 9 Bitcoin ETFs are pending before the SEC at present.
The main reason for rejecting most of the crypto ETFs up until now was the small market cap of crypto assets which was a fraction of the mainstream market, however, the current bull run has seen the crypto market reach a $2 trillion-plus market cap with several crypto companies also making their public debut. The Grayscale Bitcoin Fund is currently the choice of institutional investors in absence of fully regulated ETFs, however, Grayscale has also declared that it is fully committed to converting its highly popular GBTC fund into an ETF.