Purpose Investments will continue the industry leading work that Ether Capital Corporation has done in building a strong ether staking capability that's accessible to all investors.
Toronto, June 17, 2024 – Purpose Investments Inc. ("Purpose") is proud to announce the launch of the Purpose Ether Staking Corp. ETF (the "ETF" or "ETHC.B"), formerly Ether Capital Corporation ("Ether Capital"), following Ether Capital’s shareholder vote that approved its conversion into an ETF managed by Purpose and completion of the related transaction. The ETF will harness proprietary staking technology to offer investors exposure to ether and staking rewards from the ether network. The ETF’s shares will begin trading today on Cboe Canada under the ticker ETHC.B.
Key Points at a Glance
- The ETF marks Purpose's fifth addition to its world-renowned digital assets lineup and its first ETF to offer ether staking.
- Ether staking is the process of participating in ether’s consensus mechanism by holding and committing ether to support network operations and earn rewards.
- Initially, Purpose anticipates staking up to 50% of the ETF’s ether balance.
- Staking typically involves a minimum of 32 ether and a lock-up period; the ETF offers investors the benefits of staking with a much lower barrier to entry. With the ETF, investors can participate in staking with a smaller investment with daily liquidity.
- As an ETF, the ETF will continue to provide investors with the benefits of regulatory oversight and security, ensuring regulated and transparent management of assets.
- To commemorate the launch, the ETF’s management fees will be waived by Purpose for the first three months ending September 17, 2024.
"We've always been excited about ether and what the technology and ecosystem represent. It's what led us to support the establishment of Ether Capital in 2018—to provide investors with a secure and transparent way to invest in ether and participate in staking," says Som Seif, founder and CEO of Purpose. "Initially, a corporate structure was the best option; now we believe an ETF is the most efficient. We are confident that Ether Capital's conversion to an ETF will provide an enhanced structure that allows investors to continue to get exposure to this exciting asset with the benefit of strong staking execution."
Staking has typically been a way for long-term ether investors to participate in the continued security and development of the ether network operations while earning income in the process. However, staking requires technical expertise, substantial initial capital, and the responsibility of managing and securing one's own staking infrastructure. The Purpose Ether Staking Corp. ETF provides investors with the benefits of staking rewards without the complexities and risks associated with individual staking, making it a more accessible and secure option. This strategy offers potential growth through ether's price appreciation and generates additional returns from staking activities.
"This represents a huge milestone in our mission to lead and democratize access to the digital assets space," says Vlad Tasevski, Head of Asset Management, Institutions, and Investors at Purpose. "By using advanced staking capabilities developed at Ether Capital and working with our custodial partners at Gemini to develop an institutional-grade ETF ether staking framework, we're providing investors with a powerful tool that combines the benefits of staking with the robust oversight, transparency, and liquidity that an ETF structure provides. It's just another step forward in our mission to provide secure and easy ways to gain exposure to digital assets."
Purpose Unlimited Inc., the parent company of Purpose Investments Inc. will provide staking services to the ETF through its proprietary staking software.
The Purpose Ether Staking Corp. ETF is the newest addition to Purpose's globally acclaimed crypto suite, which includes the world's first spot bitcoin and ether ETFs: the Purpose Bitcoin ETF and the Purpose Ether ETF. Beyond offering access to digital assets, Purpose is dedicated to educating investors. The Purpose Crypto Corner serves as an educational hub, providing investors with the knowledge and tools needed to navigate and understand the digital asset space.
To learn more about the Purpose Ether Staking Corp. ETF, visit the fund page here: purposeinvest.com/funds/purpose-ether-staking-corp-etf.
About Purpose Investments
Purpose Investments is an asset management company with approximately $20 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.
For further information, please contact:
Keera Hart
keera.hart@kaiserpartners.com
905-580-1257
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