Customers in Canada and the United States got their first opportunity to put Bitcoin into their investment portfolios using exchange-traded products after the initial Bitcoin ETFs debuted in February.
Now, Bitcoin is the most widely used cryptocurrency in the world, but what about Ethereum?
Well, following the introduction of 4 Ether ETFs in April, customers now have the chance of investing in Ethereum ETFs without having to worry about cold storage or crypto exchanges as well.
In this post, I'll go through all 4 Canadian Ethereum ETFs which are currently listed on the Toronto Stock Exchange, and I'll also go through how you can invest in them.
But first, let's go through a key distinction.
Ether vs. Ethereum ETF
An ETF may be a more appealing option for investors looking to invest in Ether or Bitcoin when compared to purchasing the cryptocurrencies directly through the use of a cryptocurrency exchange.
Whenever you purchase an Ether ETF, you are investing in Ether directly, but you don't need to buy a cold wallet to safeguard your private keys.
An ETF also allows you to hold digital currencies in your RRSP and TFSA without breaking the rules (for example, making prohibited investments).
Finally, Ethereum ETFs are traded on exchanges that are regulated by the Canadian government.
This means that if you hold assets with a brokerage firm that becomes insolvent, the Canadian Investor Protection Fund (CIPF) might be able to cover them.
It's worth noting that buying Ethereum directly through a crypto trading platform like NDAX or Coinsmart eliminates the need for you to pay a management fee, though.
Also, ETFs are limited to the two most popular cryptocurrencies (ETH and BTC) at the time, so you might benefit more from crypto exchanges if you want to buy and sell multiple crypto coins at any given time.
All in all, it's all about what better suits your needs.
The Best Ethereum ETFs in Canada
Without further delay, here are the best Ethereum ETFs in Canada:
#1 Evolve Ether ETF (ETHR)
Evolve ETFs, a Toronto-based investment firm with over $1.7 billion in assets under management, offers ETHR.
This fund is available in Canadian dollars under the ticker symbols ETHR and ETHR.U for U.S dollars. Both versions are unhedged, which means they aren't protected against loss by balancing or compensating contracts or transactions.
ETHR Fees And Performance
We still don't have any information on ETHR's performance, considering this information will be available in 2022.
The management fee charged by ETHR is around 0.75%, but this fee is being waived until May 31, 2021.
It's also hard to tell if there is a maximum MER for the fund.
How To Buy ETHR in Canada
You can get ETHR by purchasing it with a discount brokerage account. Questrade and Wealthsimple Financial are two options available to you for this.
#2 CI Galaxy Ethereum ETF (ETHX)
The CI Galaxy Ethereum ETF (ETHX) is an Ethereum ETF that was created on April 16, 2021.
It has around $112.99 million in assets under management (AUM).
ETHX trades on the Toronto Stock Exchange (TSX) under the following ticker symbols:
- ETHX.B (CAD, Unhedged)
- ETHX.U (USD, Unhedged)
ETHX Fees and Returns
Considering this fund is brand new, it has yet to provide any monthly, quarterly, or annual returns, so information on its performance is a bit lacking.
Fund managers have also waived management fees until June 15, 2021, but the fund's management fee (MER) is around 0.95%.
How To Buy ETHX in Canada
A self-directed brokerage account can be used to buy ETHX.
Questrade and Wealthsimple Trade are excellent alternatives for minimizing transaction costs: When you trade with Questrade, you may make free ETF purchases and pay reasonable trading fees. On the other hand, Wealthsimple Trade allows you to buy and sell stocks and ETFs for free.
#3 Purpose Ether ETF (ETHH)
ETHH is an Ether ETF offered by Purpose Investments that was created on April 19, 2021. Its assets under management are around 15380.1615 ETH, which translates to $49 million U.S dollars.
The fund trades on the TSX using the following ticker symbols:
- ETHH (CAD, Hedged)
- ETHH.B (CAD, Unhedged)
- ETHH.U (USD, Unhedged)
ETHH Fees and Returns
Considering ETHH was created on April 19, 2021, we still don't have any info on its performance because a full year hasn't yet transcurred.
What we can be certain about, though, is that ETHH has a management fee of 1% and its Management Expense Ratio (MER) is around 1.50%.
How To Purchase ETHH in Canada
ETHH may be bought using any of the numerous stock trading platforms, like Questrade and Wealthsimple Trade.
ETHH is not charged any trading fees when you purchase it, but selling it incurs a fee of $4.95 to $9.95 per trade using Questrade.
Trade fees are not applied when using Wealthsimple Trade for buy and sell trades, but if you purchase the USD version of the ETF, foreign currency exchange fees will apply.
#4 3iQ CoinShares Ether ETF (ETHQ)
3iQ CoinShares Ether ETF (ETHQ) is an Ether ETF that was created by both 3iQ, Canada's largest digital asset investment fund manager, and CoinShares, Europe's largest digital asset fund manager.
It was created on April 19, 2021, and it has around $2.76 million in assets under management (AUM).
ETHQ is available in Canadian and U.S. dollars under the following symbols:
- ETHQ (CAD)
- ETHQ.U (USD)
ETHQ Fees and Performance
ETHQ has a management fee of 1%. Unfortunately, its MER is not yet available, but it's worth mentioning that it will include all fund expenses.
Because this fund is relatively new, performance data isn't yet available.
How To Purchase ETHQ in Canada
You can get your hands on ETHQ using a self-directed brokerage account, just like all other ETH ETFs on this list.
Wealthsimple Trade and Questrade are great options for this.
It’s never been easier to invest in Ethereum with the launch of four Ether ETFs.
Retail investors now have a chance to add Bitcoin and Ethereum to their portfolios using an exchange-traded product, which is great news for those who want to get into crypto investing but don't know how to do it or don't want to use a cryptocurrency exchange.
Despite the risk involved, there's no better time to invest in Ether ETFs than now.