Canada’s First Multi-Crypto ETF Allows Investors to Hold Both Bitcoin and Ether
Evolve Funds Group has launched Canada's first multi-crypto exchange-traded fund (ETF), which allows investors to hold both Bitcoin and Ether. The ETF now trades on the Toronto Stock Exchange (TSX) under the ticker ETC.
The Evolve Cryptocurrencies ETF (ETC), a market-cap weighted crypto fund, currently has about 68% of its holdings in BTC and 32% in ETH.
Raj Lala, Evolve’s President, and CEO said in an interview,
“A lot of investors want to invest in cryptocurrencies. They’re not exactly sure which one to pick, or they may also want to get exposure to the cryptocurrencies that are growing.”
“They’re looking for more of a turnkey solution to participate in the cryptocurrency market.”
The ETF provides exposure to Bitcoin and Ether by holding its Evolve Bitcoin ETF (EBIT) and the Evolve Ether ETF (ETHR).
This new ETF will be rebalanced monthly but doesn’t use leverage and won’t pay distributions. While no management fee is imposed on the ETF, the underlying ETFs held in the fund charge a 0.75% management fee.
Being an ETF allows the product to be less costly, more transparent, and more tax-efficient than mutual funds.
On its first day of trades, the Evolve Cryptocurrencies ETF managed to amass only about $2.1 million in assets, according to the firm’s website. The other two crypto funds, Bitcoin and Ether ETFs, have about $181 million in combined assets under management.
In its most recent study that polled 208 advisors conducted from August 26 to September 10, Evolve found that 40% have invested in cryptocurrency ETFs, while 31% said client interest was their biggest driver. Of the 60% who weren’t investing in cryptocurrency ETFs, 40% cited the asset class as too volatile.
Interestingly, 80% of respondents believe Bitcoin will continue to be the largest cryptocurrency at the end of 2022, while 85% expect Ether to have the most market growth in the coming year.