Forward Movement: Three Ethereum Cryptocurrencies Receive Approval in One Day

What are the chances of three Ethereum exchange-traded funds getting regulatory approval in a single day? Most people would probably say "I doubt it. This would not happen in my lifetime. There is no reason for me to wait on this, so I wouldn't bet on it." It actually happened in North America this week, but the regulatory agency that granted the approvals was not the United States Securities and Exchange Commission.

The more progressive market regulators in Canada have been reviewing a few cryptocurrency ETH filings, and their decisions on these matters are not like those of their American counterparts. Three of these trading instruments will go live later this month on the Toronto Stock Exchange, and all three have Ethereum in common as the underlying asset.

Even though trading of these ETHs will start on the TSX, Canadian regulators who look at futures and derivatives provided their input with regard to final approval. A major difference to the Bitcoin ETH that are currently trading on the TSX is that you can easily trade both Ether and ERC-20 tokens with this new instruments. Exchange currency conversion fees are included in the price of these ETFs, which make them more attractive to prospective investors who do not wish to put too much "skin in the game."

In Canada, traders can deposit funds into retail broker accounts, take positions on these ETFs, and withdraw Canadian dollars without ever having actually held digital currency tokens. They do not have to worry about converting their tokens into fiat currency because such transactions are handled by ETF managers. The beauty of these instruments is that they can be bought and sold just as if they were shares of Air Canada.

The big surprise here is that it has taken this long for cryptocurrency ETFs to get approval. Unless you opened an account in a cryptocurrency exchange platform such as Coinbase, there was 0virtually no way to invest in cryptocurrencies to the same degree as you would have been able to buy shares in Air Canada stock and have them automatically converted to fiat currency. This is the very strong appeal of cryptocurrency ETFs.