5 Best Ethereum Funds in Canada 2023: Buy this Popular Crypto

Cryptocurrencies have been getting more attention and traction with investors given the huge levels of monetary stimulus after COVID-19. Ethereum is one of these open-source blockchains, with Ether being the platform’s cryptocurrency.

While it was more difficult to purchase Bitcoin and Ether in the past, it’s now incredibly easy to add either to your investment portfolio.

Cryptocurrency has been thought of as being a portfolio diversifier in the past. This has radically changed more recently, as we have seen the correlation between Ether and the stock market increase.

We’ll cover some of the best Ethereum funds in Canada, and outline some of their features below.

Best Ethereum Funds in Canada

Best Ethereum Funds in Canada

Remember that these funds are investing in ether, the underlying cryptocurrency. They do not invest in blockchain companies or technologies.

1. CI Galaxy Ethereum ETF

CI Global Asset Management Logo
  • Ticker – TSE: ETHX.B, ETHX.U
  • Inception Date: April 16, 2021
  • Assets under Management: $562.3 million
  • Management Expense Ratio: 0.89%
  • Listed on: Toronto Stock Exchange
  • Distribution Yield: 0%

The first fund on our list is CI’s Galaxy Ethereum ETF. ETHX is a large ETF, with one of the lowest MERs on this list.

ETHX.B is the Canadian dollar unhedged version and ETHX.U is the US dollar version of the ETF. It can be purchased in registered and non-registered accounts.

ETHX’s ether is stored in an offline cryptocurrency wallet, called cold storage. This is the safest approach to storing ether as it protects it from hackers.

2. Evolve Ether ETF

Evolve ETFs Logo
  • Ticker – TSE: ETHR, ETHR.U
  • Inception Date: April 19, 2021
  • Assets under Management: $62.9 million
  • Management Expense Ratio: 1.23%
  • Listed on: Toronto Stock Exchange
  • Distribution Yield: 0%

Next up is Evolve’s Ether ETF. This ETF is much smaller than ETHX and comes with a higher MER.

ETHR is the ticker for the Canadian dollar unhedged version, and ETHR.U is for the US dollar version of the ETF.

Similar to ETHX, ETHR uses cold storage for its ether.

3. Purpose Ether ETF

Purpose Investment Logo
  • Ticker – TSE: ETHH, ETHH.J, ETHH.B, ETHH.U
  • Inception Date: November 9, 2021
  • Assets under Management: $418.5 million
  • Management Expense Ratio: 1.48%
  • Listed on: Toronto Stock Exchange
  • Distribution Yield: 0%

Purpose offers several options with its ether ETF. ETHH is large in terms of assets, and its MER is higher than ETHR (significantly higher than ETHX).

ETHH, like the other ETFs, holds ether in cold storage. Despite the higher MER, Purpose does offer the most flexibility in terms of ETF series:

ETHH

ETHH is the currency-hedged version of Purpose’s ether ETF. It hedges out currency fluctuations between the US dollar and Canadian dollar.

ETHH.B

ETHH.B is the unhedged Canadian dollar version. Similar to most other unhedged ETFs on the list, it will cause currency fluctuations between the US dollar and Canadian dollar to impact your total returns.

ETHH.U

ETHH.U is the US dollar version of the ETF. This version can be held on the US side of your accounts.

ETHH.J

ETHH.J is the carbon offset version of the ETF. ETHH.J allows investors to 100% offset their carbon emissions from their investment. This version is offered in Canadian dollars and is unhedged.

Purpose is a great provider if you are looking for additional options when investing.

4. The Ether Fund ETF

The Ether Fund ETF
  • Ticker – TSE: QETH.U, QETH.UN
  • Inception Date: April 19, 2021
  • Assets under Management: $483 million
  • Management Expense Ratio: 1.95%
  • Listed on: Toronto Stock Exchange
  • Distribution Yield: 0%

3IQ also offers an ether ETF, although they are less known in the general Canadian investment space. They are the largest digital asset fund manager in Canada.

QETH is large in terms of assets, but it also comes with the highest MER on our list. QETH.U is the US dollar version of the ETF, while QETH.UN is the unhedged Canadian dollar option.

QETH holds its ether in cold storage.

5. CI Ethereum Fund (Mutual Fund)

CI Global Asset Management Logo
  • Mutual Fund Codes: CIG4081, CIG4082
  • Inception Date: April 26, 2021
  • Assets under Management: $8.1 million
  • Management Expense Ratio: 0.98%
  • Distribution Yield: 0%

The last fund on our list is a mutual fund, also offered by CI. The fund comes in several options, including advisor commission-embedded and fee-based.

The size of the mutual fund is very small at $8.1 million, putting it at risk of closing down in the future.

The mutual fund also comes in unhedged Canadian dollar and US dollar options.

We will cover some key points between accessing ether through a mutual fund or an ETF below.

Best Ethereum Fund in Canada

Best Ethereum Fund in Canada

In terms of the best option from our list above, we have to recommend CI’s Galaxy Ethereum ETF. Since all of the funds on our list simply invest in ether, choosing the best fund comes down to its features.

When comparing its MER and size, its fees are the lowest and its size is the largest. The size of the ETF is important because it generally means that it isn’t at risk of closing and that it should trade fairly well.

Some investors value hedging currency risk or being socially responsible. Through its various options, Purpose’s ETF would be the best fit here.

Investing in Ether: Mutual Fund or ETF

Investing in Ether: Mutual Fund or ETF

CI’s ability to offer both an ether ETF and an ether mutual fund offers investors additional flexibility.

Although mutual funds typically have higher MERs and have a bad reputation, they are simply another vehicle for investing in ether.

The main drawback of CI’s ether mutual fund is its small size. Its MER is lower than all of the other ether ETF alternatives, aside from CI’s ETHX.

Here are some general differences between ETFs and mutual funds:

  • ETFs trade on an exchange and can be bought or sold throughout the day; mutual funds cannot
  • ETFs can be shorted and can sometimes have options available
  • ETFs trade at a bid-ask spread, which can be significant depending on the ETF’s liquidity
  • Mutual fund purchases do not have a bid-ask spread

These are only some of the differences between the two structures. Make sure you are aware of all of them before purchasing an ether fund.

Where to Buy Ethereum ETFs in Canada

Where to Buy Ethereum ETFs in Canada

Ethereum ETFs can be accessed directly through a discount brokerage, or through an advisor.

Most individual discount brokerages will allow you to easily trade these funds in your investment accounts.

If you are looking to buy ether funds through an advisor, there may be some hurdles to overcome. Certain full-service brokerages restrict their advisors from adding cryptocurrencies such as ether and bitcoin to their client’s portfolios.

Risk

In all cases, ether as an investment is considered high risk. This is due to the daily volatility of ether prices, whether through a mutual fund, an ETF, or directly purchasing ether in a crypto wallet.

How to Buy the Best Ethereum Funds in Canada

The cheapest way to buy ETFs is from discount brokers. My top choices in Canada are:

Readers Choice
Qtrade
  • 105 commission-free ETFs to buy and sell
  • Excellent customer service
  • Top-notch market research tools
  • Easy-to-use and stable platform 
Low Fees
Wealthsimple Trade
  • Stock and ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable fintech company
  • Fractional shares available
Well-Rounded
Questrade
  • ETF buys have $0 trading fees
  • Excellent market research tools
  • Most types of registered accounts available

To learn more, check out my full breakdown of the best trading platforms in Canada.

Conclusion

Best Ethereum Funds in Canada

With cryptocurrencies gaining popularity and more use as time passes, now may be a good time to consider adding an allocation to your portfolio.

Accessing ether through a fund allows you to include it in your traditional investment accounts, offering potential tax advantages.

Don’t forget that you can expand your cryptocurrency investments into stocks. These will allow you to invest in blockchain companies and technologies.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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