The Ethereum ecosystem reached a significant milestone on December 10, 2020, as Canadian digital asset manager 3iQ officially listed its Ether Fund on the Toronto Stock Exchange under the ticker QETH.U. The fund, which raised more than \$75 million from Canadian investors during its initial public offering, represents the country’s first regulated and major exchange-listed Ethereum investment vehicle, opening the door for traditional investors to gain exposure to the second-largest cryptocurrency without holding it directly.
TL;DR
- 3iQ’s Ether Fund (QETH.U) officially listed on the Toronto Stock Exchange on December 10, 2020
- The fund raised over \$75 million and holds nearly 134,000 ETH in custody with Gemini
- Class A units were priced at \$10.75 each, with the offering capped at \$107.5 million
- The listing follows 3iQ’s successful Bitcoin Fund (QBTC.U) launched in April 2020
- Grayscale also purchased \$58 million in ETH and \$266 million in BTC on the same day
A Landmark Listing for Ethereum
The Ether Fund’s debut on the TSX caps off years of regulatory groundwork by 3iQ, which first received approval for the product on December 3, 2020. The Ontario Securities Commission had signed off on the final prospectus, clearing the way for the IPO to close and the units to begin trading. Each Class A unit was priced at \$10.75, with the minimum offering set at \$20 million and a maximum capacity of \$107.5 million.
According to 3iQ’s announcement, the fund holds nearly 134,000 ETH, all of which is secured by Gemini Custody — the cryptocurrency custody service founded by Tyler and Cameron Winklevoss. The choice of Gemini as custodian underscores the growing trust infrastructure being built around digital asset investment products, particularly for institutional-grade offerings.
“Our charter at 3iQ is to bring digital assets to the listed markets in a convenient and familiar fund format,” Tom Lombardi, managing director at 3iQ, told Decrypt. “The Ether Fund (TSX:QETH.U) is the country’s first regulated and major exchange listed ETH fund, and is the next step in our company’s journey.”
Building on Bitcoin’s Success
The Ether Fund listing follows 3iQ’s pioneering work with its Bitcoin Fund (QBTC.U), which became Canada’s first public Bitcoin fund when it launched on the TSX in April 2020. Both funds can be held in Canadian registered retirement accounts, making them particularly attractive for long-term investors seeking cryptocurrency exposure within tax-advantaged vehicles.
3iQ currently manages more than C\$400 million in assets under management, positioning itself as one of Canada’s leading digital asset investment managers. The firm also operates the 3iQ Global Cryptoasset Fund, a private fund available to accredited institutional investors that holds Bitcoin, Ethereum, and Litecoin.
The Broader Institutional Wave
The 3iQ listing is part of a much larger institutional trend that defined the latter half of 2020. On the very same day the Ether Fund debuted, Grayscale — the US-based digital asset manager — purchased an additional \$58 million in Ethereum and \$266 million in Bitcoin. Grayscale had also recently completed a 9-for-1 stock split of its Ethereum Trust, which was valued at approximately \$1.6 billion.
With Bitcoin up more than 150% and Ethereum up more than 300% year-to-date, investment managers have been racing to build products that capitalize on surging institutional demand. MicroStrategy, led by Bitcoin advocate Michael Saylor, had already purchased \$425 million in BTC by October 2020 and announced plans to sell \$550 million in additional equity to buy even more.
First-Day Trading Performance
The Ether Fund saw more than \$310,000 in trading volume during its first day on the Toronto Stock Exchange. While modest compared to the billions flowing through crypto spot markets daily, the figure represents meaningful institutional interest in a regulated Ethereum product. The fund tracks the US dollar price of Ethereum, allowing investors to gain exposure to ETH price movements without managing private keys or navigating cryptocurrency exchanges.
The MVIS CryptoCompare Institutional Ethereum Index, which serves as the fund’s benchmark, was specifically licensed to 3iQ for this product, ensuring that the pricing methodology meets the standards expected by traditional market participants.
Why This Matters
The listing of a regulated Ethereum fund on a major stock exchange represents a critical step in the maturation of crypto markets. For years, the narrative around institutional crypto adoption was dominated by Bitcoin. The 3iQ Ether Fund demonstrates that Ethereum has graduated from a niche technology project to an asset class worthy of its own dedicated investment products. With ETH trading at approximately \$560 and showing 300% year-to-date gains at the time, the timing of this listing reflects growing confidence among both regulators and investors that Ethereum’s role in the financial ecosystem is permanent and expanding. The flood of institutional capital into both Bitcoin and Ethereum throughout late 2020 set the stage for the massive bull run that would define early 2021.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
canada was ahead of the us on crypto etfs for years
3iQ beating the US to regulated crypto products by years. Canada was the testbed for everything that came later
3iq ether fund on tsx was huge for institutional eth exposure in canada
134K ETH in custody with Gemini and priced at 10.75 per unit. 3iQ beat the US to regulated crypto investment products by years
wall street style regulated eth investment was a first
grayscale buying 58M in ETH on the same day the 3iQ fund listed. institutional demand was clearly there, US regulators were just slower to act
134K ETH with Gemini custody at $10.75 per unit. Grayscale buying $58M in ETH on the same day tells you institutional demand was always there