Canadian company launches Ethereum ETF after raising $75 million
Company 3iQ launches first Ethereum ETF (ETH) listed on a Canadian exchange after raising $75 million in an IPO.
Grayscale announced the purchase of $266 million in Bitcoin and $58 million in Ethereum. Announced by Canadian fund management company 3iQ, the Ethereum ETF raised $75 million in its initial public offering. The fund offered 7,240,000 Class A units that have begun trading under the symbol QETH.U.
Canadian company launches Ethereum ETF, 3iQ is one of Canada’s largest fund management firms with about $400 million in assets under management (AUM). The company is recognized for having launched a public fund of investment in Bitcoin (QBTC, QBTC.U) and a private fund of investment. The latter offers Bitcoin, Ether, and Litecoin to its clients.
The Ethereum ETF aims to give Ether exposure to its clients for profit or to trade in the cryptocurrency over the long term. 3iQ will manage the investment and portfolio of the “Ether Fund”. The company has partnered with Gemini, founded by the Winklevoss twins, to gain access to their custody service.
Other important partners in the launch of the fund have been MV Index Solutions (MVIS) and VanEck’s U.S.. 3iQ announced that they will obtain institutional-grade ETH pricing through these partners.
Institutional race to buy Bitcoin and Ethereum
The launch of an Ethereum ETF on a major exchange was only a matter of time. In 2020, institutions have increased their exposure to major cryptocurrencies and have “pump” their prices. Moreover at the time 3iQ announced its product, Grayscale invested over $300 million to add 14,491 BTC and 105,000 ETH to its trusts. At the time of publication, the firm reports a record $12.2 billion in assets under management (AUM).
In addition to Grayscale, MicroStrategy will issue senior convertible notes. Initially, the company announced a $400 million offering, but institutional demand allowed them to increase it to $550 million with an additional $100 million call option.