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Highlights
- Canada’s TSX was the first to launch a Bitcoin ETF, paving the way for indirect investment
- TSX shows as many as 27 crypto ETFs in its list to choose from
- The below five are one of the most traded by volume over past some days
Do you think holding cryptocurrencies like Bitcoin and Ether is painstaking? Options to invest in cryptos are varied and range from investing directly through an exchange to holding crypto ETFs or related stocks like MicroStrategy and Tesla.
Today, let’s find out five top crypto ETFs listed on the Toronto Stock Exchange (TSX). But before that, let’s understand how they function.
Also read: Is Bitcoin better than gold as hedge against high inflation?
What are crypto ETFs?
A crypto ETF can have exposure either to a single crypto like Bitcoin or a basket of crypto assets. The big advantage to invest in crypto ETFs is that the investor can start by parking a very little sum.
These ETFs can either invest the pooled money directly into crypto assets or can track the prices of the underlying crypto’s future contracts. Either way, the ETFs have crypto exposure and the price of every unit of ETF is subject to changes depending on sentiments in cryptos.
Crypto ETFs make it possible for investors to put money in the crypto market without having to avail the services of crypto exchanges like Coinbase or wallets.
Also read: Can Bitcoin be termed as the ‘asset of the century’?
Canada’s first crypto ETFs
In February 2021, TSX listed the world’s first Bitcoin ETF in both Canadian dollar and US dollar denominations. This was the first instance when a securities regulator approved such a fund.
In the US, the regulator SEC recently approved a Bitcoin Future ETF by ProShares.
Five top trading Canadian crypto ETFs
1. CI Galaxy Ethereum ETF (TSX: ETHX.B)
CI Galaxy Ethereum ETF has a market cap of about C$ 1.8 million.
The price of one security of the ETF stood at C$18.7 as of December 20. The 52-week high of this ETF was C$22.3 and 52-week low was C$7.7.
2. Purpose Bitcoin ETF (TSX: BTCC.B)
Purpose Bitcoin ETF has a market cap of about C$ 729 million.
The price of one security of this ETF was C$9 as of December 20. The 52-week high of this ETF was C$12.6 and 52-week low was C$5.3.
3. Purpose Ether ETF (TSX: ETHH.B)
Purpose Ether ETF has a market cap of nearly C$139 million.
The price of one security of this ETF was about C$18.1 as of December 20. The 52-week high of this ETF was C$21.8 and 52-week low was C$7.6.
4. CI Galaxy Bitcoin ETF (TSX: BTCX.B)
CI Galaxy Bitcoin ETF has a market cap of slightly under a million.
The price of one security of the ETF was about C$9.18 as of December 20. The 52-week high of this ETF was C$12.9 and 52-week low was C$5.4.
5. Ether ETF (TSX:ETHR)
Ether ETF has a market cap of nearly C$102 million.
The price of one security of this ETF was about C$18.28 as of December 20. The 52-week high of this ETF was C$21.8 and 52-week low was C$7.6.
Also read: Is investing in altcoins better than Bitcoin?
Bottom line
The above five crypto funds can be a convenient option for investors in Canada exploring indirect exposure to crypto assets. Though there are multiple crypto exchanges to directly hold cryptos, it might be a little complex when the need to have a dedicated wallet arises. ETFs provide a major relief in this respect.
That said, ETFs mentioned above track underlying assets, and hence the values of holding can experience the same volatility as in cryptos. Lastly, most crypto ETFs on TSX are dedicated to Bitcoin and Ether, and hence they lack exposure to high return but also more volatile altcoins.
