Revolutionizing the Investment Landscape: Canadian Crypto ETFs Take the Stage

Written By Michael Gary Scott

Exploring the World of Canadian Crypto ETFs

Cryptocurrencies like Bitcoin and Ethereum have opened up new avenues for wealth accumulation and storage. Investors are increasingly turning towards financial instruments such as crypto exchange-traded funds (ETFs) as a means of capitalizing on this digital wave.

Canada made its mark by debuting Bitcoin and Ethereum ETFs in 2021, providing investors with the opportunity to park their gains in tax-advantaged accounts, including tax-free savings accounts and registered retirement savings plans.

The Rising Demand for Crypto ETFs

The appetite for a Bitcoin investment vehicle that combines the tradability and liquidity of an ETF has been palpable since 2021. The allure of these instruments is undeniable, as highlighted by Ross Mayfield of Robert W. Baird & Co.

Interest in Bitcoin ETFs has only intensified over time. Sean Farrell of Fundstrat projected in mid-2023 that the Bitcoin ETF market has the potential to outstrip the asset value of precious metals ETFs, potentially crossing the $300 billion threshold to become a dominant force in the financial realm.

Unveiling the Top Canadian Crypto ETFs

As the enthusiasm for cryptocurrency ETFs continues to soar, it is prudent to examine the array of options available in Canada. Below is a rundown of 13 Canadian crypto ETFs based on assets under management, accurate as of August 23, 2024.

1. Purpose Bitcoin ETF (TSX:BTCC)

Assets under management: C$2.3 billion

Enter the world’s inaugural physically backed Bitcoin ETF – the Purpose Bitcoin ETF. Launched in February 2021, this pioneering ETF managed by Purpose Investments is bolstered by 26,983.5 Bitcoins securely stored in cold storage, offering an innovative gateway for investors to trade Bitcoin sans the need for a digital wallet.

2. CI Galaxy Bitcoin ETF (TSX:BTCX.B)

Assets under management: C$754.17 million

The CI Galaxy Bitcoin ETF, a brainchild of the collaborative efforts of Galaxy Fund Management and CI Global Asset Management, hit the market in March 2021. Boasting one of the lowest management fees at 0.4 percent, this ETF provides investors with exclusive exposure to Bitcoin through a secure institutional-quality platform.

3. Fidelity Advantage Bitcoin ETF (TSX:FBTC)

Assets under management: C$506.30 million

Introducing the latest entrant to the Bitcoin ETF arena – the Fidelity Advantage Bitcoin ETF. Launched in November 2021, this ETF, with holdings secured in Fidelity’s cold storage, slashed its management fee in January 2024 to a mere 0.39 percent, underscoring its commitment to provide investors with cost-effective exposure to Bitcoin.

4. CI Galaxy Ethereum ETF (TSX:ETHX.B)

Assets under management: C$455.29 million

The CI Galaxy Ethereum ETF, a product of the CI and Galaxy collaboration, rolled out in April 2021, offering investors a direct line to the Ethereum price through Ether holdings stashed in cold storage. With its management fees clocking in at 0.4 percent, this ETF paves the way for investors to tap into the dynamic world of Ethereum.

5. Purpose Ether ETF (TSX:ETHH)

Assets under management: C$369.30 million

The Purpose Ether ETF, a custodian of 98,611 Ether since its inception in April 2021, provides investors with exposure to the daily price gyrations of Ether tokens, all securely stored in cold storage. With a management fee of 1 percent, this ETF represents a sophisticated avenue for harnessing the potential of Ether.

See also  Analysis: The Rise of Infrastructure Stocks in America Reviewing the Close of the Third Quarter 2024

As the pages turn on the Third Quarter of 2024 in the annals of U.S. equity markets, stalwart as ever, they reveal little change. While investors weathered some turbulence, the bulls, with unwavering determination, notched yet another win as the revered S&P 500 Index ETF (SPY) ascended for the fourth consecutive month.

Despite burgeoning global tensions in the Middle East and Europe, a seismic jobs revision, and apprehension surrounding the “Yen Carry Trade,” the S&P 500 defied the odds, scaling the wall of worry to culminate the quarter with an almost 5% incline. Liquidity and the all-encompassing Federal Reserve, as often observed, have been the primary forces propelling stocks forward, setting the stage for the forthcoming Q4 and its accompanying earnings symphony.

Unveiling Industry Insights The Unyielding Ascendancy of Artificial Intelligence Stocks

A momentary dip in margins at the revered Nvidia (NVDA) and a stormy short report aimed at the AI behemoth Super Micro Computer (SMCI) painted a picture of a slackening AI revolution. Nonetheless, the standout earnings performance by database magnate Oracle (ORCL) stood as a bulwark against these concerns. Besides, a titanic revelation dawned as CEO Larry Ellison and the visionary Elon Musk jointly implored Nvidia's CEO Jensen Huang for an upsurge in GPUs.

Palantir Technologies (PLTR), the architect behind data analytics platforms that empower governments and organizations to decipher vast datasets using AI, emerged as a victor, boasting a remarkable 44.89% swell in Q3. PLTR's surge was steered by an upsurge in quarterly earnings (+80% year-over-year) and its esteemed inclusion in the S&P 500 Index.

The Empowering Role of Utilities Stocks in the AI Evolution

History teaches us that the surefire way to harvest colossal profits often hinges on vending the “picks and shovels.” In the intensifying quest for AI mastery, tech behemoths are injecting billions into energy-intensive data centers essential for AI model training. Utility stocks emerged as the prime beneficiaries in Q3. Constellation Energy (CEG) rocketed by nearly 30% for the quarter subsequent to Microsoft's (MSFT) groundbreaking accord to resuscitate “Three Mile Island.”

Space Stocks Soar to New Heights

Once deemed a whimsical dream due to the arduous journey to space and exorbitant costs entwined with the venture, the spirited surge in space stocks during Q3 presents a glimmer of hope that space could metamorphose into a burgeoning trend. Intuitive Machines (LUNR) catapulted into orbit, witnessing a stellar 150% leap for the quarter after clinching a monumental nearly $5 billion pact with NASA. Concurrently, Rocket Lab (RKLB) more than doubled its standing post the successful launch and deployment of 5 satellites into low earth orbit, cementing its position as a pioneer in launch services and space systems.

The China Stimulus: Igniting an Epic Short Squeeze

After years of stagnation, Chinese equities ignited, carving the narrative at the quarter's close. The scintillating rally ignited from the fervent stimulus agenda adopted by the Chinese government, encompassing rate slashes and bolstering the ailing real estate segment. Moreover, the amalgamation of fiscal stimulus and soaring short interest kindled a blistering short squeeze in Chinese ADRs like Futu Holdings (FUTU) and JD.com (JD).

In Conclusion

The enduring bull market persisted marvelously through Q3 2024, with sectors like space, AI, and China radiating with unparalleled vigor and promise. Unprecedented Boom in Infrastructure Stocks on the Horizon

An imminent surge is on the cusp of reshaping the dilapidated U.S. infrastructure, a pursuit that is not only bipartisan but also urgent and inexorable. Trillions are poised to be disbursed, heralding a time when fortunes will be minted as this transformation unfolds.

Unveiling Growth Opportunities in the Infrastructure Sector Unveiling Growth Opportunities in the Infrastructure Sector








Exploring Top Crypto ETFs in Canada

Exploring Top Crypto ETFs in Canada

The Rise of Crypto ETFs in the Canadian Market

As the digital currency market continues to evolve, Canadian investors are increasingly turning to Exchange-Traded Funds (ETFs) to gain exposure to cryptocurrencies like Bitcoin and Ether. These ETFs offer a convenient and regulated way for investors to participate in the volatile yet potentially rewarding world of digital assets.

The Landscape of Top Crypto ETFs

Let’s delve into some of the prominent crypto ETFs available in the Canadian market:

3iQ CoinShares Bitcoin ETF (TSX:BTCQ)

With assets under management totaling US$299.41 million, the 3iQ CoinShares Bitcoin ETF tracks the price movement of Bitcoin and stores its assets in cold storage. Launched in March 2021, this ETF charges a management fee of 1 percent.

Evolve Bitcoin ETF (TSX:EBIT)

Partnering with cryptocurrency experts, Evolve ETFs introduced the Evolve Bitcoin ETF with assets under management of C$223.38 million. Launched in response to the Purpose Bitcoin ETF, it offers exposure to Bitcoin using the CME CF Bitcoin Reference Rate.

Purpose Bitcoin Yield ETF (TSX:BTCY)

The Purpose Bitcoin Yield ETF implements a covered call strategy to generate yield for investors. This ETF provides a unique way to earn income from Bitcoin price movements through call options.

Purpose Ether Yield ETF (TSX:ETHY)

Similar to its Bitcoin counterpart, the Purpose Ether Yield ETF enables investors to generate yield while investing in Ether. By lending Ether to institutional borrowers, investors can benefit from monthly interest distributions.

Evolve Ether ETF (TSX:ETHH)

The Evolve Ether ETF simplifies investing in Ether, using the CME CF Ether-Dollar Reference Rate for pricing. Like its Bitcoin counterpart, this ETF charges a 0.75 percent management fee.

3iQ CoinShares Staking Ether ETF (TSX:ETHQ)

Building on the success of its Bitcoin ETF, 3iQ Digital Asset Management launched the CoinShares Ether ETF in April 2021. With assets under management of C$62.3 million, this ETF aims to provide exposure to Ether’s price movements.

Evolve Cryptocurrencies ETF (TSX:ETC)

The Evolve Cryptocurrencies ETF, the first multi-cryptocurrency ETF in Canada, offers combined exposure to Bitcoin and Ether. This ETF allows investors to diversify their crypto holdings based on market capitalization.

Fidelity Advantage Ether ETF (TSX:FETH)

Coming to market in September 2022, the Fidelity Advantage Ether ETF stores its holdings in cold storage and carries a management fee of 0.4 percent. This ETF complements Fidelity’s successful Bitcoin offering.

Conclusion

The growth of crypto ETFs in Canada reflects the increasing demand for digital assets among investors. These funds provide a regulated and convenient way to gain exposure to cryptocurrencies while managing risk. As the market continues to evolve, investors have an expanding array of options to navigate the crypto landscape.