The race to launch the world’s first physically backed Ethereum exchange-traded fund (ETF) is heating up in Canada, with two major asset managers preparing to list their products on the Toronto Stock Exchange (TSX) on April 20. In a striking twist, both firms are claiming the title of “world’s first,” highlighting the fierce competition in the rapidly evolving crypto ETF landscape.
Canada continues to solidify its position as a pioneer in cryptocurrency-based financial products. Following the successful rollout of Bitcoin ETFs earlier this year, investor demand and regulatory openness have paved the way for Ethereum ETFs—marking a significant milestone in mainstream crypto adoption.
The Rise of Physically Backed Ethereum ETFs
Unlike futures-based funds, physically backed crypto ETFs hold the actual digital asset—such as Ethereum (ETH)—in secure offline storage, commonly known as cold storage. This structure offers investors direct exposure to price movements without the complexities of managing private keys or digital wallets.
Two Canadian financial giants are leading this new wave:
- Purpose Investment with its Purpose Ether ETF (ETHH)
- CI Global Asset Management with its CI Galaxy Ethereum ETF (ETHX)
Both funds are set to begin trading on April 20 and will be available in both CAD and USD share classes, making them accessible to a broad range of North American investors.
👉 Discover how Ethereum ETFs could reshape your investment strategy in 2025.
Purpose Investment: Claiming the Title of “First-to-Market”
Purpose Investment, which already manages over $10 billion in assets, announced that its Purpose Ether ETF (ETHH) has received regulatory approval from Canadian securities authorities. The fund will directly purchase and securely store real ether, ensuring full transparency and alignment with underlying market performance.
Key features of ETHH:
- Physically backed: Holds actual ETH, not derivatives
- Cold storage security: Assets stored offline to minimize hacking risks
- Management fee: Up to 1.50%
- Initial unit price: $10 per share (CAD and USD versions)
- No pre-launch purchases allowed
According to the company’s website, this will be the first Ethereum ETF settled in ether, rather than cash—a distinction that could appeal to purists seeking true digital asset ownership through traditional brokerage accounts.
This isn’t Purpose’s first foray into crypto ETFs. In mid-February, it launched the Purpose Bitcoin ETF (BTCC), which became the first regulator-approved, physically backed Bitcoin ETF in North America. That success laid the groundwork for expanding into Ethereum, the second-largest cryptocurrency by market cap.
CI Global Asset Management Enters With Lowest Fee Yet
Almost simultaneously, CI Global Asset Management unveiled its competing product: the CI Galaxy Ethereum ETF (ETHX). While also physically backed and using cold storage, CI differentiates itself with one compelling feature—a management fee of just 0.40%, the lowest among all announced Ethereum ETFs globally.
Additional highlights:
- Direct investment in ether
- Priced using the Bloomberg Galaxy Ethereum Index (tracks USD-denominated ETH prices)
- Available in CAD and USD units
- Same launch date: April 20 on TSX
CI has built momentum in the crypto space throughout 2025. On March 9, it launched the CI Galaxy Bitcoin ETF, also at a 0.40% fee. Furthermore, its CI Bitcoin Fund became North America’s first Bitcoin mutual fund, offering institutional investors another regulated access point.
With such aggressive pricing, CI aims to capture cost-sensitive investors and position itself as a leader in affordable, compliant crypto exposure.
Why Canada Leads the Crypto ETF Revolution
Several factors explain why Canada is outpacing other markets like the U.S. in launching crypto ETFs:
- Regulatory clarity: Canadian securities regulators have adopted a cautious but progressive approach.
- Established infrastructure: Existing frameworks for commodity-based ETFs were adapted for crypto.
- Investor demand: Retail and institutional appetite for digital assets continues to grow.
- Innovation-friendly institutions: Firms like Purpose and CI are willing to pioneer new financial instruments.
This environment has turned Canada into a testing ground for next-generation investment products—especially as U.S. regulators remain hesitant about approving spot Ethereum ETFs.
👉 See how global investors are gaining secure access to Ethereum through regulated ETFs.
Market Reaction: Ethereum Holds Strong Despite Short-Term Volatility
Despite the excitement around these new ETFs, Ethereum’s price has seen slight short-term fluctuations. According to Coindesk, ETH dipped over 1% following the announcements, trading above $2,400 per coin. It had briefly surpassed $2,500 earlier in the week—an all-time high.
Data from CoinMarketCap shows:
- 24-hour change: Down over 1.5%
- 7-day return: Nearly +17% gain
This resilience underscores strong underlying demand. The introduction of regulated ETFs typically brings long-term bullish sentiment, even if initial reactions are muted due to profit-taking or market positioning.
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Frequently Asked Questions (FAQ)
Q: What is a physically backed Ethereum ETF?
A: It’s an exchange-traded fund that holds actual ether tokens in secure storage, providing investors with direct exposure to ETH price movements without needing a digital wallet.
Q: How do I invest in these Canadian Ethereum ETFs?
A: Investors can buy shares through any brokerage account that provides access to the Toronto Stock Exchange, using CAD or USD depending on the share class.
Q: Why are there two “first” Ethereum ETFs launching at once?
A: Purpose Investment claims to be first due to its ether-settled structure, while CI emphasizes being the lowest-cost option. Both launched on the same day with different competitive angles.
Q: Are these ETFs safer than holding crypto directly?
A: Yes—for many investors. They eliminate custody risks associated with private keys and offer regulatory oversight, though they come with management fees.
Q: Will U.S. investors be able to access these funds?
A: Possibly through international brokers, but availability depends on local regulations. Most U.S. investors await SEC approval for domestic spot Ethereum ETFs.
Q: Does cold storage really protect against hacks?
A: Offline cold storage significantly reduces risk compared to online wallets. Reputable firms use multi-layered security protocols, including geographically distributed vaults and multi-signature authorization.
Looking Ahead: A New Era of Crypto Accessibility
The dual launch of Purpose ETHH and CI ETHX represents more than a marketing battle—it signals growing institutional confidence in Ethereum’s long-term value proposition. As more investors seek regulated pathways into digital assets, these ETFs offer a trusted bridge between traditional finance and blockchain innovation.
With Canada once again leading the charge, the global financial community is watching closely—especially regulators south of the border.
👉 Stay ahead of the curve—explore how regulated crypto funds are transforming modern portfolios.
As the ecosystem evolves, one thing is clear: the era of crypto ETFs is just beginning, and Canada is setting the pace.