The Ethereum Fund IPO is anticipated to close on December 10th, 2020 after which the Toronto Stock Exchange will list the asset under the symbol QETH.U.
The news is big for Ethereum as noted by Gemini founder Tyler Winklevoss who added that all of the ETH raised by the fund will be held by Gemini custody. He added that there was around $75 million worth of ETH in the fund which has now been closed.
Huge news for Ethereans. The Ether Fund by @3iq_corp will list on the Toronto Stock Exchange ($QETH) tomorrow morning. The fund has already raised ~$75MM. All $ETH will be held by @Gemini Custody. To the moon! 🚀
— Tyler Winklevoss (@tyler) December 10, 2020
Bitcoin Funds Already Listed
On December 3, the institutional investment firm announced that the Ether Fund has filed with the securities regulatory authorities in Canada and received a receipt for its final prospectus in relation to the IPO.
It added that the Toronto Stock Exchange (TSX) has conditionally approved the listing of the Class A units at a price of US$10.75 per unit. The minimum size of the offering is $20 million and the maximum size of the Offering is $107.5 million.
The firm’s investment objectives for the Ethereum fund are to provide holders of the units with:
“Exposure to the digital currency Ether and the daily price movements of the U.S. dollar price of Ether, and the opportunity for long-term capital appreciation.”
3iQ also manages a TSX listed Bitcoin Fund (QBTC, QBTC.U) as well as a private fund called the 3iQ Global Cryptoasset Fund. The private fund holds Bitcoin, Ethereum, and Litecoin and is available to accredited institutional investors in Canada.
The move reinforces the premise that institutions have been driving the market momentum in 2020. Major institutional funds such as Grayscale have been buying up Bitcoin and Ethereum to provide exposure to the assets for professional investors.
As reported by CryptoPotato, investments have been flowing out of gold and into crypto over the past few months which has added further fuel to this digital asset fire.
Ethereum Price Outlook
Ethereum prices are in retreat along with the general market pullback at the moment. Though over the past 24 hours, the asset has made 3.5% to reach $567 at the time of press. Over the past week, however, it has declined over 5% but longer-term signs indicate that Ethereum is in a bull market.
With the Beacon Chain hype now over it is likely that ETH prices will just mirror what Bitcoin does over the next month or so. The 3iQ stock market listing is unlikely to have any effect on ETH prices.