Tech
11 Canadian Cryptocurrency ETFs (Updated 2024)
Cryptocurrencies like Bitcoin and Ethereum offer an alternative way to create and store wealth. While directly holding these digital assets is a popular option, investors are also clamoring for financial products like cryptocurrency exchange-traded funds (ETFs).
Canada first launched Bitcoin and Ethereum ETFs in 2021. These Canadian Bitcoin and Ethereum ETFs allow investors to deposit returns into tax-free accounts such as tax-free savings accounts or registered retirement savings plans.
“There is a strong demand for a Bitcoin product that has all the features that people love about ETFs, which is that they are exchange-traded and that they are liquid,” said Ross Mayfield, investment strategy analyst at Robert W. Baird & Co., Bloomberg said in mid-2021.
Interest has only grown since then. Sean Farrell, head of digital asset strategy at Fundstrat, he wrote by mid-2023 that the overall Bitcoin ETF category has the potential to surpass the precious metals ETF market in terms of asset value. “Bitcoin ETFs could eventually become a >$300 billion category,” he said in the note.
Ethereum ETFs have also gained traction and become a major topic of discussion. Ethereum is the most widely used blockchain technology, and Ether, the digital currency of this platform, is the second largest cryptocurrency after Bitcoin.
With this in mind, it is worth taking a look at the Canadian cryptocurrency ETFs currently available. The list below includes the 11 options available on the Canadian market sorted by assets under management and all data presented is as of July 2, 2024.
1. Purpose Bitcoin ETF (TSX:BTCC)
Assets under management: CAD 2.3 billion
Billed as the world’s first physically regulated Bitcoin ETF, Bitcoin ETF Purpose launched in February 2021 and is backed by Bitcoin in cold storage. This means the fund allows investors to add and sell Bitcoin without the need for a digital wallet.
Hosted by Canadian investment firm Purpose Investments, the Purpose Bitcoin ETF is backed by 26,886.85 Bitcoin and has a management expense ratio of 1%.
2. Bitcoin Galaxy CI ETF (TSX:BTCX.B)
Assets under Management: CAD 734.92 million
Launched in March 2021, the Bitcoin Galaxy CI ETF was born from a partnership between cryptocurrency leaders Galaxy Fund Management and CI Global Asset Management. Galaxy Fund Management is part of Galaxy Digital, a diversified financial services company with a focus on digital assets and the blockchain technology sector.
The ETF aims to offer investors exposure to Bitcoin through an institutional-quality fund platform, as its holdings are entirely in Bitcoin and are held in cold storage. At 0.4 percent, this fund boasts one of the lowest management fees of all crypto funds on the market.
3. CI Galaxy Ethereum ETF (TSX:ETHX.U)
Assets under Management: CAD $578.86 million
THE ETF CI Galaxy EthereumAnother collaboration between CI and Galaxy, offers investors exposure to the spot price of Ethereum through holdings of Ether in cold storage. The fund was launched on April 20, 2021, the same day like two of the other Ether ETFs on this list. At the time, CI Global Asset Management suggested that “owning Ether is similar to owning a basket of early-stage, high-growth technology stocks.”
The CI Galaxy Ethereum ETF has remarkably low management fees of just 0.4%.
4. Fidelity Advantage Bitcoin ETF (TSX:FBTC)
Assets under Management: CAD$480.23 million
The most recent Bitcoin fund on this list, the Fidelity Advantage Bitcoin ETFlaunched in November 2021. Offers the security of Fidelity’s in-house cold storage services for its securities.
While it previously had a management fee of 0.4%, in line with the CI and Galaxy funds, in January 2024 the Fidelity Advantage Bitcoin ETF lowered it to an extremely low management fee of 0.39%.
5. Purpose Ether ETF (TSX:ETHH)
Assets under Management: CAD$451.3 million
THE Ether ETF Purpose is a direct custody Ether ETF launched on April 20, 2021. This fund holds 96,789 Ether, which it holds in cold storage.
The Purpose Ether ETF offers investors exposure to the daily price movements of physically settled Ether tokens with a 1% management fee.
7. Evolve Bitcoin ETF (TSX:EBIT)
Assets under Management: CAD 205.12 million
Evolve ETFs have partnered with cryptocurrency experts, including Gemini Trust Company, CF Benchmarks, Cidel Bank & Trust and CIBC Mellon Global Services, to launch Evolve Bitcoin ETFThe fund, which holds its own Bitcoin, has a management fee of 0.75%.
Launched a week after the Purpose Bitcoin ETF, its Bitcoin investments are priced based on the CME CF Bitcoin Reference Rate, a daily benchmark for Bitcoin denominated in U.S. dollars.
8. Evolve Ether ETF (TSX:ETHR)
Assets under Management: CAD 82.55 million
THE Evolve Ether ETF offers investors a simpler path to investing directly in Ether. The fund’s Ether holdings are valued based on the CME CF Ether-Dollar Reference Rate, a daily benchmark for Ether denominated in U.S. dollars. Like the Evolve Bitcoin ETF, the Evolve Ether ETF has a management fee of 0.75 percent.
9. 3iQ CoinShares Staking Ether ETF (TSX:ETHQ)
Assets under Management: CAD 63.6 million
Following the success of its Bitcoin ETF, 3iQ Digital Asset Management has launched its CoinShares Ether ETF in April 2021. This fund has a similar objective, offering exposure to Ether and its daily price movements in US dollars. It also has a 1 percent management fee.
10. Evolve Cryptocurrency ETF (TSX:ETC.U)
Assets under Management: CAD 37.12 million
THE Evolve Cryptocurrency ETF launched in September 2021 as the first multi-cryptocurrency ETF, offering combined exposure to both Bitcoin and Ether.
This Evolve ETF product allows investors to diversify their cryptocurrency portfolios and provides indirect exposure to the two coins, weighting them by market cap and rebalancing its holdings on a monthly basis. Bitcoin makes up the majority of its portfolio.
While this ETF has no management fees, the underlying funds that hold both Bitcoin and Ether have management fees of 0.75% plus applicable taxes.
11. Fidelity Advantage Ether ETF (TSX:FETH)
Assets under Management: CAD 19.42 million
Following the successful launch of its Bitcoin fund, Fidelity has brought its Profitable Ether ETF on the market in September 2022, making it the newest Ether ETF in Canada. Its holdings are held in Fidelity’s internal cold storage.
The Fidelity Advantage Ether ETF has a management fee of 0.4%.
This is an updated version of an article first published by Investing News Network in 2021.
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Securities Disclosure: I, Melissa Pistilli, do not have any direct investment interest in any of the companies mentioned in this article.
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