Galaxy Digital is Ready to Capture the First Mover Advantage with its Ethereum ETF (ETHX)
Just like the Purpose Bitcoin ETF (BTCC) did with its explosive debut, the leading candidate to be the base layer of Web 3.0, ETHX will also provide investors exposure to “the explosion of decentralized applications.”
After the Bitcoin ETF, Mike Novogratz’s Galaxy Digital is ready to bring Ethereum to institutional investors.
CI Global Asset management has filed for a preliminary prospectus for CI Galaxy Ethereum ETF. When launched, it is expected to be the first ETF in the world that will directly invest in Ether, “one of the most highly valued cryptocurrencies.”
“CI is quickly establishing a leadership position in this space, having launched CI Galaxy Bitcoin Fund and recently filing a preliminary prospectus for CI Galaxy Bitcoin ETF, in partnership with blockchain and cryptocurrency experts Galaxy Digital,” said Kurt MacAlpine, CEO of CI Financial, the parent company of CI GAM.
This makes sense given that the competition for Bitcoin ETF is raging, and as we reported, it’s all about having the first-mover advantage. As we saw in the case of the Purpose Bitcoin ETF (BTCC), the first Bitcoin exchange-traded fund, with just a one day lead on the Evolve Fund Groups EBIT, BTCC raked in nearly 17x more inflows than EBIT.
“Smart. Probably better odds for assets to be first in Ethereum than 5th in bitcoin,” commented Eric Balchunas, BI’s senior ETF analyst.
With the fund, the involved parties aim to reduce the friction that investors have traditionally faced in buying and holding cryptocurrencies.
CI Galaxy Ethereum ETF will trade on the Toronto Stock Exchange (TSX) under the ETHX ticker. ETHX will be investing directly in the second-largest cryptocurrency, with its holdings priced using the Bloomberg Galaxy Ethereum Index.
While CI GAM will be the manager of the product, Galaxy Digital will act as the Ether sub-advisor for the ETF.
“Ethereum is the leading candidate to be the base layer of Web 3.0, and Ether is a growth asset that provides investors exposure to the explosion of decentralized applications,” said Mike Novogratz, Chairman, and CEO of Galaxy Digital Holdings.
A preliminary prospectus dated February 24, 2021, has already been filed with Canada's securities commissions.