Ethereum is the blockchain platform powering thousands of decentralized applications, like US dollar stablecoins, decentralized finance ("DeFi"), non-fungible tokens ("NFTs"), and decentralized autonomous organizations ("DAOs"). If Bitcoin is digital gold, Ethereum can be thought of as a world computer that can power the future of finance. Learn more about the differences here.

Ether is a cryptocurrency (or "token") that is required to transact on the Ethereum network. When ether is used to transact, it is referred to as gas.

An ether ETF provides investors with exposure to ether's price via an exchange-traded fund, which continuously offers and redeems shares based on demand. This elasticity allows the fund to closely track ether's net asset value (NAV) closely. Choosing an ether ETF provides a straightforward way to invest in ether compared with other investment options. For more info about the difference between an ether ETF and other investment vehicles, read here.

Purpose Ether ETF is simple and no different from other ETFs when it comes to the client experience:

1. You, the investor, purchase ETF units on the Toronto Stock Exchange (TSX) just the same as you would purchase any other stock or ETF.
2. Purpose will then use your proceeds to purchase Ether from institutional-grade liquidity providers.
3. The Ether is then settled and stored in our secure, offline wallet (also known as a cold wallet).
4. Similar to commodity funds, as the investor, you now own units of the ETF, which owns physically settled Ether.

The ETF utilizes institutional-grade liquidity providers, to help us buy ether at the best possible price for investors. We do not use retail cryptocurrency exchanges to make our ether purchases to ensure our transactions are as secure as possible.

The fund's ether assets are safely held with a leading cryptocurrency custodian, Gemini Trust Company. Gemini is a licensed New York state trust company that undergoes regular bank exams and cybersecurity audits. Day to day, the unstaked ether is held in Purpose's secure, offline wallet with the custodian. This wallet is disconnected from the internet, significantly reducing the risk of theft.

100% of the Ether in the ETF is held in secure, offline storage, which is also known as “cold” storage because it is not actively connected to the internet. We only use an online or “hot” wallet for transitory purchases when the ETF is buying and selling Ether. The ETF only invests in and holds 100% physically settled Ether.

While we cannot guarantee there is no risk, we've taken every precaution possible to ensure the assets are held safely. We store 100% of the ETF's assets offline, in cold storage with world-class cryptocurrency custodians, Gemini and Coinbase. This dual custody structure adds another layer of redundancy and provides diversification against the risk of theft or errors. Instances of ether being "hacked" typically happen with unregulated exchanges that lack proper controls and assets stored in online hot wallets.

Absolutely! One of the main reasons why we wanted to launch this ETF was to give investors the ability to gain exposure to Ether through registered accounts.

Yes. The ETF is offered in CAD denominated (ETHH for $CAD FX Hedged and ETHH.B for $CAD Non-FX Hedged) as well as USD denominated units (ETHH.U $USD Non-FX Hedged).

The ETF uses the TradeBlock ETX Index to calculate its Net Asset Value.

Purpose Ether ETF trades on the Toronto Stock Exchange under the tickers ETHH ($CAD FX Hedged) and ETHH.B ($CAD Non-FX Hedged) with the USD-denominated units trading under ETHH.U ($USD Non-FX Hedged).

No, at the moment, we do not offer the option to redeem ETF units for your share of ether holdings.

If you are an institutional investor, please contact us. If you are a retail investor, unfortunately, most US brokerages do not allow retail investors to purchase foreign ETFs or mutual funds that trade on foreign exchanges. Please reach out to your brokerage to see if you can purchase the Purpose Ether Staking Corp. ETF.

Great question! These three ticker symbols offer three different currency options, outlined below. Remember, all series hold the same underlying asset: Ether!

• ETHH is purchased with Canadian dollars and hedges US currency exposure.
• ETHH.B is purchased with Canadian dollars and does not hedge US currency exposure.
• ETHH.U is purchased with US dollars, allowing investors to hold Ether in USD.

When buying a Canadian-listed ETF that holds assets in a different currency, an investor takes on currency risk. This risk can either help or hurt performance, depending on whether the Canadian dollar strengthens or weakens against the foreign currency.

By buying a currency hedged version, we mitigate currency risk by hedging against USD currency. What’s left? Simply Ether, without needing to worry about CAD/USD currency fluctuations.

The price of Ether is often quoted in US dollar terms, both in the media and on websites. Since ETHH.B is purchased in Canadian dollars, holders should monitor the Canadian dollar Ether price pairing to exclude US dollar currency impacts.

Up to 50% of the Ether held in the portfolio may be staked at any given time.

The fund does not expect to pay regular cash distributions on its shares. Any income generated by staking activities will accrue into the fund and increase the NAV.

No. By investing in the ETF, you can participate in staking without the required minimum of 32 ETH and maintain daily liquidity (no lock-up period).

The ETF only invests in and holds 100% physically settled ether.

Futures contracts have a finite lifespan. That means the fund manager has to sell expiring contracts and re-buy the contracts with a later date. This process creates a gain or loss. In a normalized market, the futures curve is upward sloping, meaning you are selling low and buying high to maintain the same exposure to ether, resulting in additional costs to the holder. By owning physical ether, an investor doesn’t need to worry about losses associated with continuously selling and rebuying futures contracts. You simply own ether.

Smart question! We’re glad you asked. There are four core advantages to an ETF over buying Ether directly from a cryptocurrency exchange:

• Taxes: While you can purchase an ETF in a tax-deferred or tax-free registered account, Ether marketplaces can only allow purchases through non-registered, taxable accounts.
• Ease: There are several steps to purchasing Ether through a marketplace. When you buy an ETF, you don’t have to worry about custody, security or a host of other issues.
• Security: Currently, Ether marketplaces are much less regulated than security exchanges. Investors need to take additional steps to protect their assets from cybersecurity and theft, like constructing or contracting their own cold wallet.
• Execution: Individual marketplaces have been known to have pricing issues relative to other marketplaces. By using a proprietary index methodology from our partners at TradeBlock, we are insulated from pricing anomalies that have been documented at individual marketplaces.

An ETF provides a purer exposure to Ether and the structure better reflects what investors are looking for – to track the price of Ether. Unlike ETFs, closed-end funds cannot quickly add or remove units to maintain consistent exposure. This means that closed-end funds may trade at a premium or a discount, depending on the amount of demand. In an Ether fund trading at a premium or discount, investors may incur losses from both a decline in the price of Ether and the premium being compressed or the discount being widened. An ETF has a robust creation and redemption process that allows exposure to expand and contract as necessary to accommodate demand.

The ETF will trade only during market hours, 9:30 AM EST – 4:00 PM EST, Monday – Friday (excluding Canadian holidays).

ETHC can be bought anytime throughout market hours, but we recommend using a limit order and avoiding purchases near market open (9:30AM EST) and close (4:00PM EST).