Exploring the Wild Wild West of Finance:
The realm of cryptocurrencies, boasting the likes of Bitcoin and Ethereum, is a thrilling avenue for wealth accumulation. While many opt to directly hold these digital gems, the allure of creative financial conduits like crypto exchange-traded funds (ETFs) has not dulled.
A Journey into the Past with Eyes on Tomorrow:
Canada blazed the trail back in 2021 with its inception of Bitcoin and Ethereum ETFs. These Canadian ETFs are a boon for investors seeking refuge within tax-sheltered havens such as tax-free savings accounts or registered retirement savings plans.
Tales of yesteryears reverberate in present excitement. Ross Mayfield, the investment aficionado from Robert W. Baird & Co., forecasted in 2021 the dire need for a Bitcoin product that encapsulates the ETF essence. A product liquified and trappable in the exchange web—a modern-day gold mine.
A Glimpse into Tomorrow’s Landscape:
Fast forward to 2023, Sean Farrell of Fundstrat painted a vivid picture of the burgeoning Bitcoin ETF domain. He envisioned the Bitcoin ETF arena overshadowing the realm of precious metals in asset valuation—a forecast approximating a colossal $300 billion category.
Not to be outshone, Ethereum ETFs carved their route to prominence. Ethereum, the pulsating heart of blockchain technology, bequeaths Ether—the second-in-command cryptocurrency after Bitcoin—magnifying the chatter surrounding the realm of possibilities.
With minds zoned into the current financial zenith, let’s unveil the array of Canadian cryptocurrency ETFs. Here are 13 gems glittering on the Canadian stage, ranked by assets under management.
The Trailblazers of Crypto:
1. Purpose Bitcoin ETF (TSX:BTCC)
An eccentric entity, the Purpose Bitcoin ETF hit the ground running in February 2021, boasting accolades as the world’s first physically settled Bitcoin ETF. Hosted by Purpose Investments, this enigma is fortified by 26,983.5 Bitcoins ensconced in cold storage. A 1% management expense ratio ornaments this pioneering venture.
The Galaxy of Possibilities:
2. CI Galaxy Bitcoin ETF (TSX:BTCX.B)
In the grandeur of March 2021, the CI Galaxy Bitcoin ETF was birthed from the celestial alliance of Galaxy Fund Management and CI Global Asset Management. With a mere 0.4% management fee, this ETF provides a gateway to the realm of Bitcoin through institutional-grade fortification and cold storage.
The Star Chronicles:
3. Fidelity Advantage Bitcoin ETF (TSX:FBTC)
The newborn of the Bitcoin brood, the Fidelity Advantage Bitcoin ETF graced the scene in November 2021. Sheltered under Fidelity’s cold storage wings, this ETF slashed its management fee to an almost negligible 0.39% in January 2024.
Riding the Waves of Ethereum:
4. CI Galaxy Ethereum ETF (TSX:ETHX.B)
The CI Galaxy Ethereum ETF, a sibling of the CI-Galaxy consortium, pulsates with the promise of Ethereum’s spot price. Launched in conjunction with two peers on the list in April 2021, this ETF champions a ‘low-at-0.4%’ management fee mantra.
Ascending the Etherial Summit:
5. Purpose Ether ETF (TSX:ETHH)
Behold the Purpose Ether ETF! Launched hand in hand with the CI Galaxy Ethereum ETF in April 2021, this ETF beckons investors to the realm of Ether tokens through cold storage custody. A 1% management fee orchestrates the symphony of Ether price oscillations.
Top Cryptocurrency ETFs Shaping the Market in 2024
The Rise of Cryptocurrency ETFs
As the financial landscape continues its mesmerizing digital metamorphosis, the ascent of cryptocurrency ETFs has emerged as a phoenix from the ashes of traditional investment vehicles.
3iQ CoinShares Bitcoin ETF (TSX:BTCQ)
March 2021 bore witness to the inaugural flight of the 3iQ CoinShares Bitcoin ETF, a vessel that traverses the choppy seas of Bitcoin price movements in US dollar realms. This ETF, adorned with assets under management valued at a majestic US$299.41 million, securely cradles its Bitcoin treasures in cold storage.
Evolve Bitcoin ETF (TSX:EBIT)
In a partnership reminiscent of legendary collaborations, Evolve ETFs orchestrated a symphony of expertise with luminaries such as Gemini Trust Company and CIBC Mellon Global Services to bestow upon the world the Evolve Bitcoin ETF. Launched hot on the heels of the Purpose Bitcoin ETF, this fund dances to the tune of CME CF Bitcoin Reference Rate, handsomely managing assets totaling C$223.38 million.
Purpose Bitcoin Yield ETF (TSX:BTCY)
The Purpose Bitcoin Yield ETF tantalizes investors with a siren call, offering a covered call strategy to serenade them with yields generated from Bitcoin call options. Here, the symphony of Bitcoin price movements orchestrates a monthly ballet of distributions, adorning a throne of riches worth C$105.5 million.
Purpose Ether Yield ETF (TSX:ETHY)
Following the footprints of its Bitcoin counterpart, the Purpose Ether Yield ETF invites investors to a delightful stroll through the meadows of Ether, all while savoring the fruits of yield generation. Purpose Investments extends a helping hand, lending Ether to eager borrowers and reaping interest-rich harvests, with assets under management blossoming at C$63.4 million.
Evolve Ether ETF (TSX:ETHH)
The Evolve Ether ETF emerges as a steed riding forth into the Ether-scape, offering a smooth passage for investors seeking Ether exposure. Priced against the CME CF Ether-Dollar Reference Rate, this noble fund houses assets of C$63.04 million and sports a 0.75 percent management fee.
3iQ CoinShares Staking Ether ETF (TSX:ETHQ)
Hot on the heels of its Bitcoin triumph, 3iQ Digital Asset Management unveiled the CoinShares Ether ETF, a kindred spirit to its Bitcoin sibling. This heavenly offering promises daily Ether price movements in US dollars, with assets under management valued at C$62.3 million and a regal management fee of 1 percent.
Evolve Cryptocurrencies ETF (TSX:ETC)
The Evolve Cryptocurrencies ETF prances onto the stage as a multi-cryptocurrency marvel, adorning investors with a tapestry woven of Bitcoin and Ether. This vibrant creation, where Bitcoin reigns supreme, holds assets under management totaling C$39.09 million and beckons with rebalancing rituals under the market cap moon.
Fidelity Advantage Ether ETF (TSX:FETH)
With a flourish rivaling the finest maestros, Fidelity unveils the Advantage Ether ETF, showcasing a fresher approach to Ether investments. This newest Ether ETF in Canada is wrapped in Fidelity’s cold storage embrace, boasting assets worth C$21.4 million and a dashing management fee of 0.4 percent.
These gems of the cryptocurrency realm stand as testaments to the evolving financial sanctum, promising investors a chance to sail uncharted seas while relishing the bounties of digital treasure.
