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February 26, 2021

CI GAM files preliminary prospectus for Ether ETF with Galaxy Digital partnership

CI Global Asset Management (CI GAM) has filed and secured a receipt for a preliminary prospectus for an Ether ETF, in what is said to be a world first.

The CI Galaxy Ethereum ETF (ETHX) will invest directly in Ether, which is built on the Ethereum blockchain.

The firm worked with cryptocurrency expert Galaxy Digital Capital Management for the new offering.

Galaxy Digital Holdings chairman and CEO Mike Novogratz said: “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 decentralised applications.”

The new ETF aims to help investors gain exposure to Ether through an institutional-quality fund platform.

ETHX will invest directly in Ether with its holdings priced with the Bloomberg Galaxy Ethereum Index (ETH Index), which is owned by Bloomberg Index Services.

ETH Index helps measure the performance of a single Ether traded in US dollars.

CI GAM will serve as the manager of the ETF. Galaxy Digital Capital Management will be the sub-adviser and carry out Ether trading on behalf of the ETF.

CI Financial CEO Kurt MacAlpine said: “With these funds, we are reducing the friction points that investors have traditionally faced in buying and holding cryptocurrencies. CI Galaxy Ethereum ETF is an important addition to that lineup as this emerging asset class gains increasing interest and validation.”

Recently, CI GAM filed and received a receipt for a preliminary prospectus for a Bitcoin ETF.

Earlier digital asset manager 3iq too filed a preliminary prospectus for a Bitcoin ETF with the Ontario Securities Commission.

Besides, Toronto-based Purpose Investments received the nod of Canadian securities regulators to launch a direct custody Bitcoin ETF.

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