Are TSX Bitcoin & Ether ETFs A Buy Amid Crypto Market Volatility?

In February 2021, Purpose Investments Inc launched the first-ever Bitcoin Exchange Traded Fund (ETF) (TSX:BTCC.B) on the Toronto Stock Exchange. Around the same time, Evolve Group came out with its own Bitcoin ETF (TSX:EBIT) to imitate the largest crypto coin’s growth.

A few months later, both the investment management services providers launched their own Ether ETFs on the TSX as well in April. These Ether funds closely track Ethereum’s token price trajectory to offer investors a similar exposure.

After creating a buzz among digital asset investors last month, these ETFs declined by 30 to 40 per cent quarter-to-date (QTD), led by the heavy selloff in the two top cryptocurrencies amid rising uncertainties and volatility.

Let us dive into these cryptocurrency funds’ price performances.

Purpose Bitcoin ETF (TSX:BTCC.B)

The Bitcoin ETF unit currently has a price of C$ 7.13 and a market cap of C$ 521 million.

The fund has dropped over 35 per cent since its debut on February 18, and is trading 41 per cent below its record high of C$ 12.10 (April 14, 2021) at the moment.

The rising fear of the ‘crypto bubble’ bursting has given way to the recent pullback. However, ETFs might be a safer bet when it comes to the volatile crypto market and crashing crypto exchanges.

Evolve Bitcoin ETF (TSX:EBIT)

Evolve Bitcoin ETF, managed by Evolve Funds Group Inc, also tumbled as much as 35 per cent QTD, with its current market cap standing at C$ 56 million. It is presently priced at C$ 18.39 apiece.

Meanwhile, Bitcoin was trading in the range of US$ 38,000 to US$ 40,000 per token early on Thursday, May 20. It has fallen nearly 40 per cent from its record high of US$ 65,829.

Bitcoin holds 38 per cent year-to-date (YTD) gains and a market cap of US$ 737 billion (7:20AM EST).

Source: Pixabay 

Purpose Ether ETF (TSX:ETHH.U)

Purpose Ether ETF units have dipped by 35 per cent week-to-date (WTD), following the Ethereum token’s massive fall of 40 per cent on Wednesday.

The Ether ETF fell more than 23 per cent on Wednesday. The digital assets firm, meanwhile, holds assets under management (AUM) worth over C$ 1 billion.  

Evolve Ether ETF (TSX:ETHR.U)

Evolve Ether ETF dropped 36 per cent WTD to a value of C$ 11.78 apiece. It also declined by 23 per cent on Wednesday, led by the crypto market crash.

The Ether fund, however, is up nearly 18 against its launch price of C$ 10 apiece.

Evolve Funds Group manages C$ 1.8 billion in AUM, and the asset management firm offers diversified ETFs

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.



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