In Brief:
- First multi-cryptocurrency ETF launched by Evolve Funds Group Inc.
- Evolve ETF has begun trading on the Toronto Stock Exchange (“TSX”)
- Currently, ETF contains the holding of 68% in Bitcoin and 32% in Ethereum
The Evolve Cryptocurrencies ETF (“ETC“) announced the launch of Canada’s first multi-cryptocurrency ETF. ETC has started trading on the Toronto Stock Exchange (“TSX“) under the ticker symbols: ETC and ETC.U.
ETC provides diversification in the cryptocurrency markets that will attract more traders. The fund currently holds 68% of Bitcoin and 32% of ether. It provides a great opportunity for investors and traders since Bitcoin and ether makes up 65% of the global cryptocurrency market. Evolve says they’ve tried to include multiple cryptocurrencies other than bitcoin and ether but the Ontario Securities Commission has only approved Bitcoin and either.
The media release of Evolve says that a lot of users want to invest in crypto but they are not sure in which currency they should invest? ETC will provide the combination of the top 2 currencies that have captured the market.
Initially based on their respective market capitalization weightings ETC plans to invest in Bitcoin ETF (“EBIT“) and Ether ETF (“ETHR“) and will use the methodology employed by CF Benchmarks. ETC will not use leverage and will not be paying regular cash distributions.
The EBIT and ETHR holdings are based on the CME CF Bitcoin and Ether-Dollar Reference Rates, respectively. These are the two indices that are administered by CF Benchmarks.
One interesting thing about the ETF is that investors need not pay any management fees for ETC but buyers will have to pay 0.75% of net asset values for EBIT and ETHR.
While the US is delaying the approval of ETFs, Canada and Europe allowed fund managers to offer cryptocurrencies as ETFs. Following the approval of the Canadian ETF, Cathie Wood’s ARK Invest allocated $5.7 billion to invest in Canadian Bitcoin ETFs.
