Top Ether ETFs in Canada: Investing in Ethereum

Bitcoin and Ethereum are the most popular cryptocurrencies in the world.

After the first Bitcoin ETFs launched in February of this year, retail investors got their first chance to add bitcoin to their portfolios using an exchange-traded product.

They now have that opportunity with Ethereum as well, following the launch of four Ether ETFs in April alone.

In this article, I summarise the Ether ETFs that are currently listed on the Toronto Stock Exchange, and how to buy them.

Related: Best Trading Platforms in Canada.

Ethereum ETFs in Canada

Ether is the token or digital currency that facilitates transactions on the Ethereum blockchain.

The four Ether ETFs in Canada are:

  • CI Galaxy Ethereum ETF (ETHX)
  • Purpose Ether ETF (ETHH)
  • Evolve Ether ETF (ETHR)
  • 3iQ CoinShare Ether ETF (ETHQ)

1. CI Galaxy Ethereum ETF (ETHX)

ETHX trades on the TSX under two ticker symbols:

  • ETHX.B (CAD unhedged)
  • ETHX.U (USD unhedged)

The key facts for this fund (ETHX.B) as of April 28, 2021, are:

  • Inception date: April 16, 2021
  • Assets under management: $112.99 million
  • Management fee: Up to 0.95% (0% until June 15, 2021)
  • Eligible accounts: RRSP, RRIF, TFSA, RESP, RDSP, DPSP
  • Listing currency: USD and CAD
  • Units per ETH: 216.75
  • Cold storage: 100%
  • Risk rating: High

ETHX Fees and Returns

This ETF is branded new and has not yet reported any monthly, quarterly, or annual returns.

You can expect to pay a management fee (MER) of up to 0.95%. That said, the fund managers have waived management fees until June 15, 2021.

How To Buy ETHX in Canada

CI Galaxy Ethereum ETF can be purchased using a self-directed brokerage account.

If you want to minimize your transaction fees, Questrade and Wealthsimple Trade are great choices.

Questrade offers free ETF purchases and competitive trading fees when you sell. You can get $50 in free trades when you deposit at least $1,000 and use our SAVVY50 promo code.

In addition to ETFs, Questrade also supports FX, GICs, precious metals, stocks, and mutual fund trading.

Wealthsimple Trade allows you to buy and sell stocks and ETFs for free i.e., no trading fees. New clients who sign up using our link get a $50 cash bonus after trading at least $100.

2. Purpose Ether ETF (ETHH)

ETHH is an Ether ETF offered by Purpose Investments.

The fund is available as:

  • ETHH (CAD Hedged)
  • ETHH.B (CAD non-hedged)
  • ETHH.U (USD non-hedged)

Its key facts as of April 27, 2021, are:

  • Inception date: April 19, 2021
  • Assets under management: 15380.1615 ETH
  • Management fee: 1.00%
  • MER: Up to 1.50%
  • Eligible accounts: Registered and non-registered accounts
  • Cold storage: 100%
  • Listing currency: CAD and USD
  • Risk rating: High

ETHH Fees and Returns

The performance of ETHH won’t be available until after 1 year from its inception date.

It has a 1% management fee, and the management Expense Ratio (MER) may be up to 1.50%.

How To Purchase ETHH in Canada

You can purchase ETHH using any of the readily available stock trading platforms.

My top choices are Questrade and Wealthsimple Trade.

Questrade does not charge trading fees to purchase ETHH, however, you pay $4.95 to $9.95 per trade when you sell.

Wealthsimple Trade has no commissions on buy and sell trades. If you purchase the USD – denominated ETF, foreign currency exchange fees will apply.

3. Evolve Ether ETF (ETHR)

ETHR is offered by Evolve ETFs, an investment firm with more than $1.7 billion in assets under management.

This fund is available in Canadian dollars (ETHR) and in U.S. dollars (ETHR.U). Both versions are unhedged.

Fund facts for ETHR as of April 27, 2021, are:

  • Inception date: April 20, 2021
  • Assets under management: $13 million
  • Management fee: 0.75%
  • MER: Not provided
  • Eligible accounts: Registered and non-registered accounts
  • Cold storage: 100%
  • Listing currency: CAD and USD
  • Risk rating: High
  • Shares per ETH: 275.2007
  • Reference Index: CME CF Ether-Dollar Reference Rate

ETHR Fees and Performance

ETHR’s performance will not be available until 2022.

Its expected management fee is 0.75%, although fees are being waived until May 31, 2021.

It is unclear whether a maximum MER has been set for the fund.

How To Buy ETHR in Canada

Like ETHX and ETHH, you can also purchase ETHR using a discount brokerage account.

Options include Questrade, Wealthsimple Trade, and these bank brokerage accounts.

4. 3iQ CoinShares Ether ETF (ETHQ)

3iQ offers a few bitcoin and Ether funds.

The Ether ETF is available in Canadian and U.S. dollars as follows:

  • ETHQ (CAD)
  • ETHQ.U (USD)

Key facts for ETHQ as of April 27, 2021, are:

  • Inception date: April 19, 2021
  • Assets under management: $2.76 million
  • Management fee: 1.00%
  • MER: Not yet available
  • Eligible accounts: Registered and non-registered accounts
  • Cold storage: 100%
  • Risk rating: High
  • Units per ETH: 243.26

ETHQ Fees and Performance

ETHQ has a 1% management fee. The MER is not yet available and will include all fund expenses.

Given that this fund is brand new, performance data is not yet available.

How To Purchase ETHQ in Canada

Like all the other ETH ETFs on this list, you can purchase ETHQ using a self-directed brokerage account.

My top options for saving on fees are Wealthsimple Trade and Questrade.

Ether ETF vs. Ether

When you hold an Ether ETF, you are directly invested in Ether, however, you don’t need to worry about buying a cold wallet to secure your private keys.

Also, an ETF makes it possible to hold digital currencies in your RRSP and TFSA without running afoul of the rules (i.e. prohibited investments).

Some investors may find it easier to gain exposure to Ether or Bitcoin via an ETF as opposed to buying it directly on a cryptocurrency exchange.

Lastly, ETH ETFs are traded on exchanges that are regulated by the federal government.

This means your assets are likely protected by the Canadian Investor Protection Fund (CIPF) if the brokerage service becomes insolvent.

On the flip side, you can avoid paying anyone a management fee by purchasing Ethereum directly through a crypto platform such as NDAX or Coinsmart.

And, if you plan on dabbling with various tokens in the hope that they will do well, ETFs currently exist for only ETH and BTC.

How To Purchase Ethereum Directly in Canada

If you’d like to purchase the ‘physical’ Ether and be responsible for its safekeeping (i.e., by using a cold wallet like Ledger or Trezor), the following platforms are some of the most popular:

FeaturesCoinSmartNDAXBitbuyWealthsimple Crypto
Coins OfferedBTC, ETH, LTC, XRP, USDT, BCH, XLM, ADA, QCAD, EOS, NEOBTC, ETH, XLM, LTC, EOS, LINK, USDT, DOGE, ADA, XRPBTC, ETH, LTC, BCH, XRP, XLM, EOSBTC and ETH
Funding optionsInterac e-Transfer, bank wire, bank draft, credit/debit cardInterac e-Transfer, bank draft and bank wireInterac e-Transfer; bank wireElectronic fund transfer
Fees0.20% – 0.40% trading fees; some on deposits/withdrawals0.20% trading fee, free deposits; flat-rate fee for withdrawals0.10% – 0.20% trading fees; some fees for deposits and withdrawals1.5% trading fee; no commission on deposits and withdrawals
CIPF/CDIC insuranceNoNoNoNo
Security95% cold storage; 2FA95% cold storage; 2FA95% cold storage; 2FACoin held with a regulated custodian – Gemini
Referral programYesYesYesYes
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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in the Toronto Star, The Globe and Mail, MSN Money, Financial Post, Winnipeg Free Press, CPA Canada, Credit Canada, Wealthsimple, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO and monitors his credit score for free using Borrowell.

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