Introduction to Cryptocurrency ETFs
Interest in cryptocurrency exchange-traded funds (ETFs) has been on the rise. In the US, Bitcoin ETFs’ net assets surpassed US$100 billion in November 2024, gaining ground on US gold ETFs. This trend is expected to continue, with Sean Farrell, head of digital asset strategy at Fundstrat, predicting that the Bitcoin ETF category could surpass the precious metals ETF market in terms of asset value.
What are Ethereum ETFs?
Ethereum is the most widely used blockchain technology, and Ether, the digital currency of this platform, is the second largest cryptocurrency after Bitcoin. Ethereum ETFs have become a major talking point, offering investors exposure to the spot Ethereum price through Ether holdings in cold storage.
Canadian Cryptocurrency ETFs!
The Canadian market offers a range of cryptocurrency ETFs, including 13 Ether and Bitcoin ETFs. These funds are sorted by assets under management and offer investors a way to diversify their portfolios.
Top Cryptocurrency ETFs in Canada
- Purpose Bitcoin ETF (TSX:BTCC): With assets under management of C$2.6 billion, this fund is billed as the world’s first physically settled Bitcoin ETF. It is backed by Bitcoin in cold storage and has a management expense ratio of 1.5 percent.
- CI Galaxy Bitcoin ETF (TSX:BTCX.B): Launched in March 2021, this fund has assets under management of C$1.07 billion. It offers investors exposure to Bitcoin via an institutional-quality fund platform, with holdings wholly in Bitcoin and kept in cold storage.
- Fidelity Advantage Bitcoin ETF (TSX:FBTC): With assets under management of C$931.07 million, this fund is the newest Bitcoin fund on the list. It offers the security of Fidelity’s in-house cold storage services for its holdings and has a management fee of 0.32 percent.
Other Notable Cryptocurrency ETFs
- CI Galaxy Ethereum ETF (TSX:ETHX.B): This fund has assets under management of C$284.3 million and offers investors exposure to the spot Ethereum price through Ether holdings in cold storage.
- Evolve Bitcoin ETF (TSX:EBIT): With assets under management of C$229.8 million, this fund holds its own Bitcoin and has a management fee of 0.75 percent.
- Purpose Ether ETF (TSX:ETHH): This fund has assets under management of C$215.8 million and offers investors exposure to the daily price movements of physically settled Ether tokens with a management fee of 1 percent.
Additional Cryptocurrency ETFs
- Purpose Bitcoin Yield ETF (TSX:BTCY): This fund uses a covered call strategy to generate yield for investors and has assets under management of C$140 million.
- Evolve Cryptocurrencies ETF (TSX:ETC): With assets under management of C$61.35 million, this fund provides combined exposure to both Bitcoin and Ether.
- Purpose Ether Yield ETF (TSX:ETHY): This fund offers investors an opportunity to invest in Ether while generating yield and has assets under management of C$44.5 million.
- Evolve Ether ETF (TSX:ETHR): With assets under management of C$40.52 million, this fund offers investors an easier route to investing directly in Ether.
- Fidelity Advantage Ether ETF (TSX:FETH): This fund has assets under management of C$24.2 million and offers investors exposure to Ether with a management fee of 0.4 percent.
Conclusion
The Canadian cryptocurrency ETF market offers a range of options for investors looking to diversify their portfolios. With the rise of Bitcoin and Ethereum, these funds provide a way for investors to gain exposure to the cryptocurrency market. Whether you’re looking for a physically settled Bitcoin ETF or an Ether ETF with a low management fee, there’s an option available. As the cryptocurrency market continues to grow, it’s likely that we’ll see even more ETFs emerge, offering investors even more choices.
