Evolve has submitted a preliminary prospectus for an Ethereum ETF to Canadian regulators

Less than a month after becoming the second company to receive approval from Canadian regulators to list a bitcoin exchange-traded fund (ETF), Evolve plans to launch an Ethereum ETF in Canada.

According to a press release on Tuesday, Evolve has filed a preliminary prospectus with Canadian regulators seeking permission to begin trading an Ethereum ETF product.

According to the statement, if the Ethereum ETF is approved, it will trade under the symbol "ETHR" and track the Ethereum-US dollar reference rate (ETHUSD_RR) provided by CF Benchmark. The Chicago Mercantile Exchange (CME) Ethereum futures contracts also use the same benchmark price.

The announcement also revealed that the proposed Ethereum ETF would offer Unhedged Units denominated in U.S. and Canadian dollars.

Commenting on the preliminary filing, Evolve CEO Raj Lala said Evolve looks forward to offering Canadian investors exposure to another cryptocurrency through the ETF market.

For Elliot Johnson, COO and CIO of Evolve, the company decided to apply for an Ethereum ETF because Ethereum is the second largest cryptocurrency by market capitalization. He added:

“Ethereum is the foundation of a digital financial revolution that is still in its infancy. Ethereum is the most actively used blockchain and is used to pay for transaction fees and computing services.”

If approved, ETHR would become Evolve’s second cryptocurrency ETF, following the launch of its “EBIT” Bitcoin ETF in February.

As Cointelegraph previously reported, Bitcoin ETF trading has exploded in Canada, with the Purpose Bitcoin ETF surpassing $500 million in assets under management less than a week after its launch.

However, over the past few days, there has been a noticeable drop in trading volume due to the sharp fluctuations in Bitcoin’s price.

Meanwhile, the premium on Grayscale Investments’ Grayscale Bitcoin Trust product fell to a record low, while trading volume on Canada’s Bitcoin ETF surged.

JPMorgan analysts believe there is a direct link between the explosive growth in Canadian Bitcoin ETF trading and the decline in GBTC premium.

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