Ethereum ETFs: Canada Approves Three Ahead Of EIP1559

It's more good news out of the Ethereum camp as the leading smart contract platform has been approved for three ETFs in Canada.

Dennis Weidner

Dennis Weidner

April 27, 2021 4:32 PM

Ethereum ETFs: Canada Approves Three Ahead Of EIP1559

On April 16, Canadian regulators approved three Ethereum Exchange Traded Funds (ETFs) in one day, ahead of the EIP1559 upgrade. Ether token would become deflationary, as part of the network fee is slated and burned. The ETFs approved are from CI Global Asset Management, Purpose Investments, and Evolve ETFs – the first Canadian ETFs of their kind.

Updating yet again… @CIGlobalAsset & @GalaxyDigital just got approval for their #Ethereum ETF alongside @PurposeInvest's. I THINK both will begin trading on … wait for it … 4/20 — Amazing @elonmusk

When it comes to cryptocurrency ETFs, Canada is far ahead of its neighbor. The US is yet to approve even a Bitcoin ETF so far, something Canada has had for a while now and now the great white north is moving with three Ethereum ETFs. ETFs allow institutional exposure to these assets while allowing them to remain under the bounds of traditional finance.

Ether price has been on the rise over the past week, having risen 35.9% with the Berlin hard-fork and a plethora of developments at an all-time high. This will improve further with the introduction of ETFs, which are likely to have a positive effect on the price.

These ETFs will be available on Toronto’s stock exchange (TSX) by 20 Apr. Ethereum has been gaining a lot of interest from institutional investors and corporate entities lately, as the world’s second largest cryptocurrency by market capitalization is revolutionizing the blockchain industry and changing their perception of what’s possible with the crypto technology. And Ethereum 2.0 is coming.

About Ethereum 2.0

Ethereum 2.0 is the next big upgrade for the Ethereum network. It will bring Proof of Stake (POS), eWASM and sharding. It will reduce the resources, required to run the Ethereum network, as well as bring scalability and performance improvements.

The Eth2 upgrade will happen in three phases. The first Phase 0 Beacon Chain should happen by the end of Q2 2020. It will introduce the staking facility. This is followed by Phase 1 in Q1 2021. This second change will introduce sharding and allows storing data on shards. However, transactions won’t be processed still.

Phase 2 will make the Ethereum 2.0 truly complete. The network will become operational after its introduction at some point in 2022. It will bring the Ethereum WebAssembly (eWASM) replacing the now operational Ethereum Virtual Machine (EVM). Only after Phase 2 has been rolled out, proper execution of smart contracts will start. The Eth1 and Eth2 chain will gradually merge with each other.

Dennis Weidner
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Dennis Weidner

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