Ethereum is one of the most popular cryptocurrencies and is only second to Bitcoin in terms of market capitalization.
As a result, it’s no surprise that there are a number of ethereum ETF’s available for you to invest in.
Here are 3 ethereum ETFs for Canadian investors to explore:
1. CI Galaxy Ethereum (Ticker: ETHX.B)
2. Purpose Ether ETF (Ticker: ETHH)
3. 3iQ Ether Staking ETF (Ticker: ETHQ)
| CI Galaxy Ethereum | Purpose Ether ETF | 3iQ Ether Staking ETF | |
|---|---|---|---|
| Ticker | ETHX.B | ETHH | ETHQ | Current Price | $15.73 CAD | $12.91 CAD | $17.21 CAD |
| Assets Under Management (CAD) | $837 Million | $535 Million | $71 Million |
| Inception Date | April 16, 2021 | April 16, 2021 | April 19, 2021 (Staking added October 20, 2023) |
| Management Fee | 0.4% | 1% | 1% |
Current Price is in real time and AUM is as of March 7, 2024
1. CI Galaxy Ethereum
Ticker: ETHX.B
Name: CI Galaxy Ethereum
Assets Under Management: $837 million*
Inception Date: April 16, 2021
Management Fee: 0.4%
*AUM as of March 7, 2024
ETHX.B is one of largest Ethereum ETFs in terms of assets under management.
With the introduction of their Bitcoin ETF in March 2021, CI Financial was one of the first companies in Canada to start offering crypto ETFs.
With this experience, the company boasts great security measures including a 100% cold storage of all cryptocurrency assets.
This reduces the risk of any cybersecurity issues that could result from assets being accessed illegally.
The ETF also boasts a 0.4% management fee, the lowest out of the main competitors.
Definition: Cold Storage
Cold storage is a way of holding cryptocurrencies (like Ethereum) offline. This reduces the likelihood that hackers would be able to gain access to your wallet. Cold storage usually involves hardware similar to a USB that can be unplugged and stored in a safe physical location.
2. Purpose Ether ETF
Ticker: ETHH
Name: Purpose Ether ETF
Assets Under Management: $535 Million*
Inception Date: April 16, 2021
Management Fee: 1%
*AUM as of March 7, 2024
Released on the same day as the CI Galaxy Ethereum ETF, Purpose Investing shares many of the same attributes as their competitor.
The company also offers a Bitcoin ETF, uses cold storage, and implements robust security measures.
One of the main differences is their management fee, which is double what is charged by the CI Galaxy Ethereum ETF.
3. 3iQ Ether Staking ETF
Ticker: ETHQ
Name: 3iQ Ether Staking ETF
Assets Under Management: $71 Million*
Inception Date: April 19, 2021
Management Fee: 1%
*AUM as of March 7, 2024
The original 3iQ Ether ETF started just 3 days after their two main competitors, however on October 20, 2023, has been relaunched as the the 3iQ Ether Staking ETF
The ETF once had hundreds of millions of dollars in assets under management.
The ETF shared a similar 1% management fee as Purpose Ether ETF, however has reduced it to 0% as part of the relaunch until March 31, 2024.
Again, the fund uses the same security measures as their competitors, with 100% cold storage for all cryptocurrency assets
How to Invest in Ethereum ETFs
The benefit of investing in an Ethereum ETF is the ability to buy and sell through brokerage platforms.
These platforms take away the complexity of needing to set up separate accounts on cryptocurrency exchanges like Coinbase or Binance.
Those who are already investing in the stock market can easily add cryptocurrency to their portfolio through Ethereum ETFs.
In Canada, there are several great options to choose from.
Wealthsimple is my personal choice.
The biggest advantages to me are the easy-to-navigate interface and free trading of Canadian stocks and ETFs.
This means that investors can buy and sell Ethereum ETFs without commissions or fees.
Another great option is Questrade, which also offers free trading of Canadian stocks and ETFs.
While many investors prefer to trust traditional institutions like the Big 5 banks, these newer “discount brokerage” platforms are just as safe and secure as CIBC, TD, Scotiabank, BMO, and RBC.
With protection through the Canadian Investor Protection Fund (CIPF), investors should feel safe knowing that their money is insured from losses due to unforeseen circumstances like insolvency.
Investing in an Ethereum ETF vs Ethereum Directly
Ethereum ETFs were created with the goal of mirroring the underlying cryptocurrency’s performance as best as possible.
Ethereum ETFs are a great way to add cryptocurrency to your investment portfolio.
While setting up an account on a cryptocurrency exchange can be time-consuming, buying and selling Ethereum ETFs is no different than buying or selling any other stock or ETF that is listed on a stock exchange.
These ETFs have given everyday traders the ability to add cryptocurrency into their portfolio through a simple and easy-to-understand way.
ETFs also take away the complexity of storing cryptocurrencies in wallets and the associated security implications.
All of this is taken care of by the investment funds that manage the ETFs.
One of the biggest benefits of Ethereum ETFs is the ability to hold cryptocurrency in registered accounts.
While there was previously no way to add cryptocurrencies to your RRSP or TFSA accounts, the creation of these Ethereum ETFs means that Canadians can now hold cryptocurrencies in registered accounts and see tax-free growth.
On the flipside, Ethereum ETFs cannot be traded 24 hours a day.
While crypto exchanges are open all day, ETFs are subject to stock exchange hours.
This means that traders can only buy or sell during weekdays when the markets are open.
With cryptocurrencies like Ethereum still remaining a highly volatile investment, huge price swings are not uncommon.
Not being able to trade overnight or even over an entire weekend can be a meaningful disadvantage.
Traders could theoretically see price decreases on Friday evening and not be able to buy or sell their shares until the following Monday morning.
Pros
- Ability to shield profits in registered accounts
- Buy and sell within your existing brokerage platform with no additional account setup required
Cons
- Restricted by market hours
- Management fees on ETFs
Frequently Asked Questions
- Is there a Canadian Ethereum ETF?
- How can I get Ethereum in Canada?
DISCLAIMER: This is not investment advice. Recommendations are for educational purposes only, presented as a path for you to further research. Please seek independent financial advice before making any financial decisions. PiggyBank is not liable for any investment decisions you make based on the information presented on this website.
