Canada’s first spot Ethereum ETF launched in 2021, providing investors with easy exposure to the cryptocurrency's price. During the same year, multiple ETFs were approved by the Canadian government and listed on the Toronto Stock Exchange.
Canadian investors who plan to invest in crypto ETFs now have reliable options available from trillion-dollar investment firms. This guide aims to educate investors about Ethereum ETFs available in Canada and the differences between them.
Overview
Name | Symbol | MER | Management Fee | Country | Website |
|---|---|---|---|---|---|
CI Galaxy Ethereum ETF | TSX: ETHX | 0.89% | 0.40% | 🇨🇦 Canada | |
Fidelity Advantage Ether ETF | TSX: FETH | 0.95% | 0.40% | 🇨🇦 Canada | |
Evolve ETHR ETF | TSX: ETHR | 1.23% | 0.75% | 🇨🇦 Canada | |
3iQ Coinshares Ether ETF | TSX: ETHQ | 1.24% | 1.00% | 🇨🇦 Canada | |
Purpose ETHR ETF | TSX: ETHH | 1.50% max | 1.00% | 🇨🇦 Canada |
1. CI Galaxy Ethereum ETF (ETHX)
CI Financial is one of the largest investment companies in Canada with over $300 billion in assets under management. The company is publicly-traded on the Toronto Stock Exchange as "CI Global Asset Management" and has been in business for nearly 6 decades.
Since its inception in 1965, it served Canadian investors with the utmost reliability. The CI Pacific Fund was one of the first Canadian expansions into Asian markets. With the introduction of the European fund, it became one of the most experienced international funds based out of Canada.
CI has the best portfolio managers in Canada and they recently introduced their first Ethereum ETF – the CI Galaxy Ethereum ETF under the ticker symbol “ETHX” on the Toronto Stock Exchange.
The CI Galaxy Ethereum ETF is based on the Bloomberg Galaxy Ethereum Index which tracks the USD performance of Ethereum. As of Dec 2022, it has $387 million in Ethereum assets, making it the largest Canadian Ethereum fund by size.
CI Galaxy also offers the lowest MER at 0.89% with a dual hedged and unhedged version (USD and CAD).
2. Evolve ETHR ETF (ETHR)
Evolve launched the world's first Ethereum ETF on the Toronto Stock Exchange in 2021 and is growing into one of the largest ETF and crypto asset management companies.
Evolve started in 2017 in Toronto and quickly grew its AUM to nearly $4 billion, making it one of the fastest-growing ETF providers in Canada. Their primary strategy is to give investors’ access to underlying spot assets, such as Ethereum in this case.
Evolve offers index-based crypto ETFs and their Ethereum ETF is one of their largest funds. The Evolve ETF is listed on the TSE under the ticker ETHR with an MER of 1.23%. The Ethereum fund has $40 million in ETH assets and purchases new ETH on behalf of its customers once they obtain the ETF.
3. 3iQ Coinshares Ether ETF (ETHQ)
3iQ is a digital asset management company based in Toronto that was founded in 2012 by Fred Pye, one of the pioneers of Stablecorp. Their angle was to combine digital trading with traditional financial accounts. With $700 million in assets under management, it is a relatively smaller investment fund.
3iQ gives direct exposure to Ethereum in a hedged USD/CAD version and they manage $17 million on the CAD fund and $13 million on the USD fund. The 3iQ Coinshares Ether ETF is trading under the ticker symbols ETHQ and ETHQ.U for the USD version. It has an MER of 1.24%.
4. Purpose ETHR ETH (ETHH)
Purpose Investments is one of the largest asset management companies in Canada and their Ethereum ETF is the 2nd-largest after CI's. Purpose specializes in high-interest savings accounts with over $14 billion in assets under management.
They recently started offering crypto ETFs and purchased hundreds of millions worth of crypto. Their portfolio is transparent and their website shows that they hold 110,000 ETH in their fund.
Purpose's Ethereum ETF is listed under the ticker symbols ETHH.U and ETHH.B for hedged USD and CAD versions. The ETF is spot-based. Purpose makes it clear that an investor is not buying futures, but they purchase Ethereum on their behalf whenever an ETF is bought.
ETHH has an MER of 1.50% which may be higher than other ETFs, but if the MER falls below 1.50%, the savings are passed on to the client.
5. Fidelity Advantage Ether ETF (FETH)
Fidelity Investments is an American investment company with over $4.5 trillion in AUM and in 2022 they launched their Ethereum ETF in Canada on the Toronto Stock Exchange.
The ticker symbol is FETH/FETH.U and they guarantee "institutional grade custody" over the Ethereum purchased. Investors enjoy maximum security and insurance for their investments.
Fidelity is the largest investment company by total AUM on this list, but their Ethereum fund is relatively small at only $5 million worth of ETH. Their MER is 0.95% which is second lowest. Fidelity also offers a mix of Bitcoin and Metaverse indexes for the crypto market.
🧠 Ether ETF FAQs
What Are Ethereum ETFs?
Ethereum ETFs are exchange-traded funds based on the spot price of Ethereum. Ethereum ETFs are traded on the stock exchange and can be purchased using a brokerage account, without needing a crypto wallet. It exclusively tracks the spot price of Ethereum instead of the crypto market at large. The main purpose is to relieve investors the stress of having to figure out blockchain technology on their own.
How Do Ether ETFs Work?
When you purchase a share, the investment fund will buy and store Ether on your behalf in cold storage.
Are Ethereum ETFs Legal In Canada??
Ethereum ETFs are legal in Canada as it was the first country to legalize crypto ETFs. The first crypto ETF in the world was the Purpose Ether ETF USD ($ETHH) launched on the Toronto Stock Exchange in 2021. Ethereum ETFs in Canada are fully legal and compliant with the law; passing all investor protection safeguards required.
What Is The Largest Ethereum ETF?
The largest Ethereum ETF in Canada is the CI Galaxy Ethereum ETF by CI with $378 million in Ethereum assets under management. The largest fund that offers Ethereum ETFs by total AUM is Fidelity Investments with over $4.5 trillion on their balance sheet.
Who Are Ethereum ETFs For?
Ethereum ETFs are for investors who want exposure to the price movement of Ethereum without investing in Ethereum directly. ETFs are also suitable for investors who want to diversify their portfolio with crypto or have exposure to ETH in a TFSA or RRSP account.
Are They Worth It?
Ether ETFs have pros and cons. The best advantage is you can hold it in a tax-advantaged account like your TFSA or RRSP (you can't do this by owning ETH directly). It's also easier since you don't need to worry about crypto exchanges, wallets, and self-custody.
The downsides are high management fees, third-party risk, and lack of ownership. A company owns the Ether on your behalf (not your keys, not your coins). It also means you can't participate in DeFi, NFTs, or Dapps because the Ethereum is not in your possession.
How Do You Buy Ether ETFs?
Canadian investors can buy Ethereum ETFs through brokerage accounts like Wealthsimple Trade and many others and by searching the ticker symbol.
Is US Dollar Hedged or Unhedged Better?
There is no right or wrong answer - it depends on the investor's preference. ETFs that are hedged attempt to reduce the impact of CAD-USD currency fluctuations on the fund's performance. Hedged ETFs are generally considered safer but can have added costs and more tracking errors. Here's a good breakdown of hedged vs unhedged ETFs for Canadians.
