Following the debut of Bitcoin futures ETF in the United States, the crypto market is abuzz with talks of an impending Ether ETF.
Speaking on a show on CNBC, Michael Sonnenshein, CEO of Grayscale -- an asset management company with $52 billion in assets under management -- says it is possible. He said it “stands to reason” the Securities and Exchange Committee (SEC) will proactively consider bringing Ethereum ETF and other similar products in the US market.
Canada already has Bitcoin, Ethereum ETFs
While US regulators have allowed Bitcoin futures ETF to be traded on the exchanges, Canada has allowed both Bitcoin and Ethereum ETFs. At the moment, 5 Bitcoin ETFs and 4 Ethereum ETFs are trading on Canadian exchanges.
The largest Bitcoin ETF -- Purpose Bitcoin ETF (BTCC) – has $1.2 billion of assets under its management while the largest Ethereum ETFs -- CI Galaxy Ethereum ETF (ETHX) – has $900 million of assets under its management.
In Canada, Bitcoin ETFs were launched between February and May 2021 while Ethereum ETFs were launched in April-May. Evolve Cryptocurrency ETF launched in September-end offers cross-currency investment options in Bitcoin and Ethereum.
Also Read | Bitcoin futures ETF short of market expectations, here's why
Canada crypto success behind US Bitcoin Futures ETF
Analysts believe the success of Bitcoin and Ether ETFs in Canada may have played a role in SEC softening its stance on Bitcoin ETF for the US markets, allowing a Bitcoin Futures ETF instead of a Bitcoin ETF.
In less than 8 months of its launch, the crypto ETF industry in Canada is closing in on $3 billion. The higher success rate of crypto ETFs in Canada is an indicator that crypto assets have a high demand in the regulated market as well.
In Canada, Ethereum ETF is as successful as Bitcoin ETF. Analysts believe that despite the SEC playing hardball, the US remains one of the most crypto-friendly nations. After giving approval to the Bitcoin futures ETF, the SEC may give its nod to Ethereum ETF.
In fact, some analysts believe an Ethereum ETF can be more successful than the Bitcoin ETF. For example, Grayscale’s Ethereum Trust (ETHE) is witnessing more institutional investors flocking to Grayscale’s Bitcoin Trust (GBTC). Some investors are always Ethereum-first.
Also Read | Cryptocurrency updates on Oct 21: BTC at lifetime high after validating moment; Baby Bitcoin surges 300%
Speaking on a show on CNBC, Michael Sonnenshein, CEO of Grayscale -- an asset management company with $52 billion in assets under management -- says it is possible. He said it “stands to reason” the Securities and Exchange Committee (SEC) will proactively consider bringing Ethereum ETF and other similar products in the US market.
Canada already has Bitcoin, Ethereum ETFs
While US regulators have allowed Bitcoin futures ETF to be traded on the exchanges, Canada has allowed both Bitcoin and Ethereum ETFs. At the moment, 5 Bitcoin ETFs and 4 Ethereum ETFs are trading on Canadian exchanges.
The largest Bitcoin ETF -- Purpose Bitcoin ETF (BTCC) – has $1.2 billion of assets under its management while the largest Ethereum ETFs -- CI Galaxy Ethereum ETF (ETHX) – has $900 million of assets under its management.
In Canada, Bitcoin ETFs were launched between February and May 2021 while Ethereum ETFs were launched in April-May. Evolve Cryptocurrency ETF launched in September-end offers cross-currency investment options in Bitcoin and Ethereum.
Also Read | Bitcoin futures ETF short of market expectations, here's why
Canada crypto success behind US Bitcoin Futures ETF
Analysts believe the success of Bitcoin and Ether ETFs in Canada may have played a role in SEC softening its stance on Bitcoin ETF for the US markets, allowing a Bitcoin Futures ETF instead of a Bitcoin ETF.
In less than 8 months of its launch, the crypto ETF industry in Canada is closing in on $3 billion. The higher success rate of crypto ETFs in Canada is an indicator that crypto assets have a high demand in the regulated market as well.
In Canada, Ethereum ETF is as successful as Bitcoin ETF. Analysts believe that despite the SEC playing hardball, the US remains one of the most crypto-friendly nations. After giving approval to the Bitcoin futures ETF, the SEC may give its nod to Ethereum ETF.
In fact, some analysts believe an Ethereum ETF can be more successful than the Bitcoin ETF. For example, Grayscale’s Ethereum Trust (ETHE) is witnessing more institutional investors flocking to Grayscale’s Bitcoin Trust (GBTC). Some investors are always Ethereum-first.
Also Read | Cryptocurrency updates on Oct 21: BTC at lifetime high after validating moment; Baby Bitcoin surges 300%
First Published: Oct 21, 2021 1:14 PM IST
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