Canada has approved three Ethereum Exchange Traded Funds (ETF) in one day, ahead of the highly anticipated EIP1559 upgrade, which is likely to see the Ether token (ETH) become deflationary, as part of the network fee is slated to be burned. The ETFs approved are from CI Global Asset Management, Purpose Investments and Evolve ETFs – first Canadian ETFs of their kind.
When it comes to Bitcoin and Ethereum ETF, Canada is far ahead of its neighbor. The US is yet to accept even a Bitcoin ETF so far, something Canada has had for a while now and now is moving with three Ethereum ETFs. ETFs enable institutional exposure to these assets, while letting them remain under the bounds of the traditional finance.
Ether price has been increasing over the past week, having surged 35.9% with the Berlin hard-fork and a plethora of developments at an ATH. This is expected to improve more with the introduction of ETFs, which are likely to have a positive effect on the price.
These ETFs will be available on Toronto’s stock exchange (TSX) by 20 Apr. Ethereum has been gaining lots of interest from institutional investors and corporate entities lately, as the world’s second largest cryptocurrency by market cap is revolutionizing the blockchain industry and changing their perception of what’s possible with the crypto technology. And Ethereum 2.0 is coming.
About Ethereum 2.0
ETH 2.0 is the next big upgrade for the Ethereum network. It will bring Proof of Stake (POS), eWASM and sharding. It will reduce the resources, needed to run the Ethereum network, as well as bring scalability and performance improvements.
The Eth2 upgrade will be implemented in three phases, with the first Phase 0 Beacon introducing the staking facility. This is followed by the Phase 1 in Q1 2021, which introduces sharding and allow data to be stored on shards, however transactions can’t still be processed.
The Phase 2 will make the Ethereum 2.0 truly complete and the network operational, after its introduction at some point in 2022. It will bring the Ethereum WebAssembly (eWASM) replacing the now operational Ethereum Virtual Machine (EVM). Only after the Phase 2 has been rolled out, proper execution of smart contracts and transactions can commence on the new Eth2 chain. The Eth1 and Eth2 chain will merge with each other over time.