CI GAM files preliminary prospectus for world’s first ether ETF
CI Global Asset Management (CI GAM) has filed and obtained a receipt for a preliminary prospectus for CI Galaxy Ethereum ETF (ETHX).
When launched, it is expected to be the first ETF in the world to invest directly in ether, the cryptocurrency built on the Ethereum blockchain.
“Cryptocurrencies are transforming the financial world, and we are excited to launch the world’s first ETF investing directly in Ether, one of the most highly valued cryptocurrencies,” says Kurt MacAlpine, Chief Executive Officer of CI Financial, the parent company of CI GAM. “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. 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.”
CI Galaxy Ethereum ETF will trade on the TSX under the ETHX ticker and is designed to provide investors with a convenient way to gain exposure to Ether through an institutional-quality fund platform. ETHX will invest directly in ether with its holdings priced using the Bloomberg Galaxy Ethereum Index (ETH Index), which is designed to measure the performance of a single Ether traded in US dollars. The ETH Index is owned and administered by Bloomberg Index Services Ltd.
CI GAM will be the manager of the ETF and Galaxy Digital Capital Management LP (Galaxy Digital) will act as the ether sub-advisor for the ETF. As sub-advisor, Galaxy Digital will execute Ether trading on behalf of the ETF. Galaxy Digital is a diversified asset management firm dedicated to the digital asset and blockchain technology sector. The team has extensive experience spanning portfolio management, capital markets, mining, operations and blockchain technology.
“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,” says Mike Novogratz, Chairman and Chief Executive Officer of Galaxy Digital Holdings.
“We are thrilled to expand our advisory relationship with CI,” says Steve Kurz, Partner and Head of Asset Management. “The CI Galaxy Ethereum ETF represents a global first, giving investors a simplified path to benefit from the potential growth of this important asset class.”
CI GAM’s leadership in the cryptocurrency market is aligned with its goals of modernising its asset management lineup to respond to evolving investor needs and includes CI Galaxy Bitcoin Fund (TSX: BTCG), which launched on the TSX in December 2020, and a preliminary prospectus for CI Galaxy Bitcoin ETF (TSX: BTCX).