Purpose Investments Unveils New Ether Staking ETF Following Conversion of Ether Capital Corporation into an ETF
June 17 2024 - 7:30AM
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 EFT’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
Hartkeera.hart@kaiserpartners.com 905-580-1257
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