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  5. ETHQ: Hi, Canadian Bitcoin ETFs seem to lose traction against the new US ETFs. [3iQ Ether Staking ETF]
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Q: Hi, Canadian Bitcoin ETFs seem to lose traction against the new US ETFs.
You had many comments on Bitcoin (halving,etc ..) in the QA.
What about the fate of Etherum ETFs ? Different enough or same path ? Why ?
Merci, Denise
Asked by Denise on April 22, 2024
5i Research Answer:

Bloomberg ETF analysts who correctly analyzed the likelihood of Bitcoin ETFs are less confident that an Ether ETF will be approved in late May. The analysts are stating that there has been less communication between the Ethereum ETF issuers and the SEC compared to the Bitcoin ETFs. However, as time passes, the likelihood of an Ethereum ETF increases as issuers may take the SEC to court over any denial, and over the past year, the SEC has lost about all court cases for crypto-related issues. The CFTC (commodities futures trading commission) has stated that ETH (Ethereum) is a commodity, which is the SECs main concern (they are trying to state it is a security).

We are not sure on the timing of the ETH ETFs, but it seems likely by the end of the year, or next year. ETH has many qualities that BTC does not (such as a yield, a more 'tech-like' component) and we feel this will resonate well with investors in general. 

Currently, there are ETH ETFs in Canada that Canadian investors can gain access to, and even one that has a yield component that offsets its MER (ETHQ). The ETF with the largest AUM is ETHX.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ETHX.B, ETHQ.