A new cryptocurrency fund is about to make its debut on the TSX Index. Late last week, the Ether Fund filed an amendment to its prospectus in which it detailed pricing. The company expects to raise up to US$107.5M at a price of US$10.75 per Class A Unit and US$10.53 per Class F Unit. Class A Units are available to all investors, while Class F units are designed for fee-based and/or institutional accounts and will not trade on the exchange.
The purpose of the fund is provide exposure to the Ether (ETH) digital currency. In other words, it is similar to Bitcoin funds in that it will buy and hold the Ether digital currency. It is simply a way for investors to gain exposure to the cryptocurrency without having to purchase the coin itself.
We have no real opinion on this fund. We are by no means crypto currency experts, but are biased towards Bitcoin as the best-in-class cryptocurrency. Many of the other coins will come and go, but we also acknowledge that there is room in the markets for other digital currencies. There is a lot of movement here with governments and banks starting to get involved. The EU announced plans to launch a Euro digital currency which would compete with Bitcoin.
All this to say, this is likely going to be a highly volatile and the Ether fund will come with considerable risk. Of note, no details on when the listing is expected and the Fund originally filed in July.