On Tuesday, Evolve Funds Group announced that it filed a second draft prospectus for Ethereum ETF. If approved, investors will have the ability to monitor daily fluctuations in ETH/USD.

The first company that filed for Ether ETF is CI Global Asset Management. It submitted a preliminary prospectus on Thursday last week.

But this is not the first application for an ETF in Canada. Back in February, the Ontario Securities Commission approved Bitcoin ETF, adding it to the Toronto Stock Exchange.

"Ethereum is a building block for a digital finance revolution" said Elliot Johnson of Evolve.

"It is the most widely used blockchain, and is used to pay transaction fees for computing services," he added.

Evolve's Ethereum portfolio will be priced based on "ETHUSD_RR", which is the base index price for Ethereum denominated in US dollars. It is managed by CF Benchmarks, and is quoted by the CME Group.

In line with this, the MiFID also licensed a new Ethereum-based derivatives trading platform in Europe. It will be launched later this month.

According to CoinDesk, this is actually the first time a license has been granted to a blockchain-based derivatives trading platform.

CloseCross will offer multilateral derivative contracts on global stock market indices, cryptocurrencies, exchange rates, commodities, stock prices, interest rates and more.

The company said it has developed and patented a platform on which traders can enter into derivatives contracts without banking and leverage.

Its Ethereum blockchain will also "fully automate the derivatives sector and completely replace centralized issuers of derivatives," said Vaibhav Kadikar, CEO of CloseCross

Kadikar also highlighted the importance of "building a consistent level of trust" through smart contracts in automated settlements and fund flows where multiple traders enter into one multilateral derivative contract.