CI Galaxy Ethereum ETF » ETHX.U // Financial Sector // Strike Price = US$xx {subscribe}
CI Galaxy Ethereum ETF » ETHX.B // Financial Sector // Strike Price = CA$xx {subscribe}
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This ETF on the Canadian TSX is tradable in US$ or CA$ and can be purchased in a tax free savings account. It’s not as good as the real thing (actual crypto), but the tax free aspect makes it enticing as we head towards another Bitcoin halving which tends to lift all the digital asset boats that are still floating.
We expect your grand children to be transacting in Bitcoin at some point but we can’t be certain that Ethereum will survive that long. Although it survived the FTX / SBF maelstrom so the odds of it navigating the next financial crisis are increased.
Bitcoin is a commodity and not a security (a stock). Commodities are generally allowed to go forth and multiple. Securities require more regulation. (Here is a taste of the arguments and the jargon, if you care.) At this point, Ethereum still qualifies as a commodity. This could be thanks to its Proof-of-Work beginnings. Proof-of-Stake beginning cryptos seem to get securities classification and thus are treated like a company.
Satoshi Nakamoto, the founder of Bitcoin disappeared in the early days and their real identity was and still is unknown and the million coins they mined to get the system going remain unclaimed.
Vitalik Buterin, the wunderkind inventor of Ethereum and still head of the development org that maintains the code, has a lot of wealth stored in ETH (286,000 ETH in a public wallet). Ethereum is considered decentralized, but is it really? Unlike Bitcoin, it has an infinite supply, although some coins get burnt and staking, as well as securing the network, reduces liquidity.
As much as Ethereum isn’t Bitcoin, Buterin and his IQ of 257 (Musk 155, Einstein 160) is an interesting character and investing in his business adventures, although still risky, seems somewhat prudent for the forward-looking folks. Bitcoin is the world’s future financial system but Ethereum is being built to be a world computer: “not only does it have the ability to transfer value, but it also allows the creation of smart contracts that are immutable and trustless.”
Here is a taste of Buterin’s blog:
“Smart contract wallets add more complexity, by making it much more difficult to have the same address across L1 and the various L2s. Today, most users are using externally owned accounts, whose address is literally a hash of the public key that is used to verify signatures – so nothing changes between L1 and L2. With smart contract wallets, however, keeping one address becomes more difficult. Although a lot of work has been done to try to make addresses be hashes of code that can be equivalent across networks, most notably CREATE2 and the ERC-2470 singleton factory, it’s difficult to make this work perfectly. Some L2s (eg. “type 4 ZK-EVMs”) are not quite EVM equivalent, often using Solidity or an intermediate assembly instead, preventing hash equivalence. And even when you can have hash equivalence, the possibility of wallets changing ownership through key changes creates other unintuitive consequences.”
Ethereum isn’t just for NFTs. Smart contracts could be used in a myriad of ways: “Popular examples of smart contracts are lending apps, decentralized trading exchanges, insurance, crowdfunding apps – basically anything you can think of.”
In the previous two Bitcoin halving cycles, Ethereum went up (approximately) 14,000% and 4,750%. If that pattern continues and it goes up 1,500% that puts the value of ETH in the US$15,000 vicinity at the peak of the cycle in 2025. It’s US$1,850 at the time of writing.
// THE CHART
ETH has good support around $1,500 but the current trend only gets it to between $2,400 and $2,900 by NYE. But once it pushes up to $3,200 it gets to the Fibonacci Golden Pocket between 0.618 and 0.65 and the uptrend it liable to accelerate significantly as it follows Bitcoin into the bull phase of its cycle.
As optimistic as we are, sometimes things don’t go as planned. Black swans exist. For long term investors, we advise being early, patient and abiding the strike price. For traders, you do you.
// BACKGROUND INFO ABOUT ETHEREUM
“Ethereum is a decentralized blockchain with smart contract functionality. Ether (Abbreviation: ETH;[a] sign: Ξ) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software. Ethereum was conceived in 2013 by programmer Vitalik Buterin … the network went live on 30 July 2015 … On 15 September 2022, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS) in an upgrade process known as “the Merge”. This has cut Ethereum’s energy usage by 99%.”
“Ethereum is a network, made up of many communities, and a set of tools which enable people to transact and communicate without being controlled by a central authority. There is no need to hand over all your personal details to use Ethereum – you keep control of your own data and what is being shared. Ethereum has its own cryptocurrency, Ether, which is used to pay for certain activities on the Ethereum network.
Launched in 2015, Ethereum builds on Bitcoin’s innovation, with some big differences.
Both let you use digital money without payment providers or banks. But Ethereum is programmable, so you can also build and deploy decentralized applications on its network.
Bitcoin enables us to send basic messages to one another about what we think is valuable. Establishing value without authority is already powerful. Ethereum extends this: rather than just messages, you can write any general program, or contract. There is no limit to the kind of contracts which can be created and agreed upon, hence great innovation happens on the Ethereum network.
While Bitcoin is only a payment network, Ethereum is more like a marketplace of financial services, games, social networks and other apps that respect your privacy and cannot censor you.”
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