An investment broker primarily geared toward buying and selling Ethereum made a little bit of history when they began trading on the Canadian Stock Exchange on Thursday (April 19). Ether Capital, named after Ethereum’s crypto coin Ether, will trade on the Aequitas NEO Exchange which is based in Toronto, and would seem to be the first company to trade a cryptocurrency on the Canadian stock market.
A crypto currency investment firm named Ether Capital began trading on the Toronto leg of the Canadian stock market earlier this week. Ether Capital CEO and Roberts told Coin Desk.com that his company had raised C$45 million which would in turn be converted into Ether in the following four weeks. His intention was to convert 90% of the funds raised into Ethereum.
Who Are Ether Capital?
Ether Capital are a company set for the purpose of buying and selling Ethereum. Formally known as Ethereum Capital, CEO Ben Roberts’ crypto company is one of the first ever businesses set up for the sole purpose of marketing cryptocurrency to be floated on a stock market.
Back in January, OMERS – one of Canada’s largest investment funds with reputed assets of $95 billion – began the process of raising $50 million for a new venture named Ethereum Capital. At that time, the speculation was that the money was for reinvesting in blockchain startup companies. Joey Krug, a director of Ethereum Capital issued this statement:
“The Ethereum network is just beginning to demonstrate its potential, with a greater number of transactions and applications being created almost daily. I believe it has the potential to disrupt many existing industries and am excited to advise Ethereum Capital due to its position to capitalize on the most promising of these resulting companies through strategic acquisitions.”
It now seems that was something of a smokescreen. Soon after, Ethereum Capital was rebranded as Ether Capital, and although they had fallen $5 million short of their 50 million-dollar target, the $45 million raised was enough to grant them a spot on the Toronto Stock exchange. On the decision to float Ether Capital on the stock market, Ben Roberts said:
“The utility of that is two-fold, yes it gives people exposure in the marketplace and more importantly creating that pool of assets gives us space in the community and the Ethereum platform. As we kind of scale that out we can have an opportunity to become something like ConsenSys, which is a large organized stakeholder in Ethereum which can then use its platform to create value.”
In truth, it took OMERS more than a year to take Ether Capital from an idea into a publicly trading company. Roberts said that the actual process of launching the company on the stock market was relatively straightforward, and involved talking with the Ontario Securities Commission and getting their approval, then speaking to several Toronto-based banks to set up a custody solution to potentially house their asset. As for the product itself, Roberts said:
“Ethereum is a project that began in Canada, [but] it’s really being developed in most major cities in the world and this is a way to bring it back to Toronto and really bridge the gap between the technical community and the finance community.”
What Is The Aequitas NEO Exchange?
The NEO Exchange is a Canadian stock exchange which is based in the city of Toronto, in Ontario, Canada. Launched in 2015, the NEO Exchange is promoted as Canada’s New Stock Exchange and the stated aim of NEO is to aid those companies, dealers and investors who are not quite big enough to make it onto the Toronto Stock Exchange. NEO claims to grant companies and individuals a better listing experience, eliminating predatory market behaviors such as high frequency trading.
The NEO Exchange is owned by Aequitas Innovations, which is primarily the parent company of the end NEO Exchange.
Toronto Stock Exchange
Should Ether Capital’s launch on the NEO Exchange prove to be hugely successful, the next step would surely be to relaunch the company, this time on the Toronto Stock Exchange, also known (TSX). The TSX is one of the world’s largest stock exchanges and is the ninth biggest by market capitalization. Toronto itself is the largest city in Canada, and fourth largest in North America, behind only Mexico City, New York and Los Angeles.
If Ether Capital does eventually get accepted onto the Toronto Stock Exchange, the markets in New York, London and Tokyo would surely follow, potentially making Ether Capital a major player in the global cryptocurrency exchange market.
However- first things first – lets hop that Ether Capital proves to be a huge hit on the NEO Exchange!