The world’s first Ethereum fund listed on a major stock exchange opened for trading this Thursday, but some problems have emerged. After its initial public offering (IPO) successfully raised US$76.5 million, the Ethereum fund TSX:QETH.U was listed on the Toronto Stock Exchange, and TSX:QETH.U opened at a price of US$10.80 per share.
Currently, the fund is available to brokers and registered retirement accounts. TSX: QETH.U is the world’s first regulated ETH fund listed on major exchanges. — 3iQ Corp (@3iq_corp) December 10, 2020
What worries interested traders is that the fund could not trade normally when it opened. Due to the delayed completion of its IPO plan, the fund stopped trading for a period of time. QETH.U hit an intraday high of $11.48 and finally closed at $11.02. This represents a 2.5% increase in QETH.U during the trading day when the ETH price fell by about 0.5%, which created a premium for the QETH.U stock price.
The fund was launched by 3iQ, Canada’s largest digital asset investment management company, and provides traders and investors with a way to gain exposure to the Ethereum market without buying, storing or selling ETH. Based on the average price of 565 USD per ETH, on the first day of the transaction, the value of each QETH.U is approximately 0.0187 ETH. The ETH supporting the fund’s stock is hosted in Gemini Custody, which is a custody company under the cryptocurrency exchange Gemini.
This is of great significance to Ethereum! — Tyler Winklevoss (@tyler) December 10, 2020
In addition to this Ethereum fund, 3iQ also issued other cryptocurrency funds. 3iQ added the Bitcoin fund TSX: QBTC at the end of October. In a research report released earlier this month, 3iQ was named the world’s third largest public digital asset fund management company. At the press conference for the opening of QETH.U trading, 3iQ emphasized the importance of issuing cryptocurrency-backed securities on major stock exchanges.
“The use of digital assets may be worrying, costly and inconvenient. 3iQ provides investors with convenient and familiar investment products to gain exposure to digital assets.”
In December 2017, the US’s first Ethereum-backed fund Gray Ethereum Trust was listed and traded on the OTC Pink market. The general manager of Grayscale said that in the third quarter of this year, the funds flowing into the fund increased, marking the arrival of a new group of “priority Ethereum” investors.
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