Compared to its neighbour to the north, the United States seems to be light years behind when it comes to crypto-currencies. Canada had already announced in February this year its first Bitcoin ETF and in April the first Ethereum ETF, it now reports a new approval: a multicrypto exchange-traded fund, ETF. Meanwhile, the US has yet to approve the first.
EvolveETF, a Canadian ETF provider, has launched the country’s first multi-cryptocurrency exchange-traded fund. The product is backed by the two largest cryptocurrencies in terms of market capitalisation: bitcoin and ethereum.
As announced on its website, EvolveETF, the new fund has already begun trading on the Toronto Stock Exchange (TSX) under the ticker symbols “ETC”. (unhedged CAD units) and “ETC.U” (unhedged USD units).
The ETC will not be directly backed by Bitcoin or Ethereum. Instead, it will hold shares in EvolveETF’s existing single crypto funds. These include its Bitcoin and Ethereum ETFs “EBIT” and “ETHR”, respectively.
The balance of each token will be “based on [bitcoin and ethereum] market capitalisation weights” and will be rebalanced each month. At this stage, your weightings should be around one-third Ethereum and two-thirds Bitcoin.
If you don’t know how to choose between Bitcoin and Ethereum
Raj Lala, President and CEO of EvolveETF, described why he sees value in these two particular cryptoassets.
“Bitcoin has established itself as a store of value and is often referred to as digital gold. Ether is often referred to as digital oil and has become an essential component of digital finance, including NFTs and other DeFi applications.”
The new ETF will help diversify investments for investors who find it difficult to choose between bitcoin and ethereum. It also offers ease of access for those seeking exposure to crypto-currencies using traditional investment methods. In addition, Royal Bank of Canada users can include ETCs in their tax-free savings account, allowing them to benefit from BTC and ETH without paying capital gains.
Canada and the United States
While Canada is taking another step forward by approving its first multi-cryptocurrency ETF, as we said, the US has yet to approve any digital asset ETFs. Companies such as Fidelity and VanEck have applied to the Securities and Exchange Commission (SEC) for permission to launch such a product. However, SEC Chairman Gary Gensler has been slow to grant approval, citing investor protection concerns. Several ETFs are still pending in the US, some of them even futures ETFs, but the green light does not seem to have been given yet.
