EvolveETF – a Canadian ETF provider – has just launched the first multi-cryptocurrency exchange traded fund in Canada. The product is backed by the two largest cryptocurrencies by market cap: Bitcoin and Ethereum.
Crypto diversification in an ETF
As announced this week on the EvolveETF website, the new fund has already started trading on the Toronto Stock Exchange (TSX) under the symbols “ETC” (CAD Unhedged Units) and “ETC.U” (USD Unhedged Units) .
ETC will not be backed by Bitcoin or Ethereum directly. Rather, it will hold shares of EvolveETF’s existing single-crypto funds. These include their Bitcoin and Ethereum ETFs “EBIT” and “ETHR”, respectively.
Their balance of each token will be “based on [Bitcoin and Ethereum’s] market capitalization weightings” and will be rebalanced monthly. Right now, their weighting is expected to be around one-third Ethereum and two-thirds Bitcoin.
Raj Lala, president, and CEO of EvolveETFs, outlined why he sees these two particular crypto assets as valuable.
“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 building block for digital finance including NFTs and other DeFi applications.”
The new ETF will help diversify investors struggling to choose between Bitcoin and Ethereum. It also provides ease of access for people who seek crypto exposure using traditional investment methods. Additionally, Royal Bank of Canada users can include ETC in their tax-free savings account, which allows them to enjoy BTC and ETH without paying capital gains.
Canada Soaring overtook the United States on accepting crypto
While Canada achieves yet another milestone in approving its first multi-crypto ETF, the United States is yet to greenlight any digital asset ETF at all. Companies like Fidelity have applied to the SEC for permission to launch such a product. However, Chairman Gary Gensler has been slow to give any approvals, citing investor protection concerns.
Brian Armstrong – CEO of Coinbase – has often criticized the SEC for its lack of regulatory clarity and reluctance to cooperate on other crypto projects. Meanwhile, Canadian authorities have provided digital asset trading platforms with remarkably clear regulatory instructions.
