On May 2, 2024, Ether Capital Corporation announced its strategic decision to convert into an exchange-traded fund (ETF) managed by Purpose Investments Inc. under a Framework Agreement. The transaction involves Purpose purchasing certain non-Ether assets from Ether Capital while the Corporation retains its Ether, cash, and equivalents. The conversion aims to align the market price of shares with the intrinsic value of the assets and improve liquidity. Ether Capital, holding approximately 46,317 Ether, reported $5.2 million in revenue for 2023, with $4.5 million from staking activities.

The transaction, subject to shareholder approval and regulatory conditions, is expected to close by June 17, 2024. If completed, Purpose will waive management fees on ETF Shares for three months. The deal includes a $1 million termination fee and a non-solicitation covenant. Legal advisors for the transaction are McCarthy Tétrault LLP for Ether Capital and Osler, Hoskin & Harcourt LLP for Purpose.