Evolve Funds Launches Canada’s First Multi-Crypto ETF (2024)

FAQs

What was the first crypto ETF in Canada? ›

Toronto, February 20, 2023 – Three years ago Sunday, Purpose Investments Inc. (“Purpose”) made history by launching the Purpose Bitcoin ETF (TSX: BTCC), the world's first Bitcoin ETF backed by physically settled Bitcoin.

This ETF trades under two ticker symbols: BTCX.B.TO – priced in Canadian dollars. BTCX.U.TO – priced in US dollars.

The Bottom Line. The first ETF was launched in Canada in 1990, which paved the way for the introduction of the first U.S. ETF, the SPDR S&P 500 ETF Trust, in 1993.

Coinbase becomes first international crypto exchange registered in Canada. Coinbase has announced its registration as a Restricted Dealer by the Canadian Securities Administrators (CSA).

In Canada, investors have had access to both spot bitcoin and spot ether ETFs since February 2021, and since then the country's global market share in spot crypto ETFs has grown to 46%, according to CoinGecko. The country's six spot bitcoin ETFs account for $2.79 billion in total assets.

However, investing in crypto ETFs is not without risk. The market is volatile, with prices fluctuating significantly in short periods. In addition, the regulatory landscape for crypto is evolving, and changes in regulations will undoubtedly impact the performance and availability of these ETFs.

When you purchase ETFs, you don't own the underlying Bitcoin, thus limiting your control over your investment. The Bitcoins held in the ETF are all under custodial ownership, which means if the custodian were to suffer from a security breach or loss of access, it would greatly affect the investors holding the ETFs.

Last, but certainly not least, is XIU, the largest and oldest ETF in Canada. This ETF originally started trading in 1990, making it the first ETF in the world. It tracks the eponymous S&P/TSX 60 index, which unlike the Capped Composite does not hold small caps and is largely dominated by large-cap stocks.

What is the disadvantage of bitcoin ETF? ›

Potential Market Inaccuracy: ETF prices might not reflect real-time fluctuations in the Bitcoin market. Unlike the crypto market, the traditional markets shut down, for a while - and this means a discrepancy might enter the prices until it corrects itself.

Vanguard S&P 500 Index ETF (TSX:VSP) is a low-cost Canadian ETF that tracks the S&P 500 index. With more than $3 billion in assets under management, the VSP ETF is among the most popular funds in Canada. The ETF is hedged to the Canadian dollar, sheltering investors from fluctuations in foreign exchange rates.

A 3x Bitcoin ETF aims to offer investors the opportunity to leverage their investment, amplifying the potential returns or losses to three times the performance of the Bitcoin index or benchmark it follows.

Fidelity's Wise Origin Bitcoin Fund (FBTC) is the fifth most popular exchange-traded fund (ETF) on the market right now, attracting roughly $6.9 billion since its introduction on Jan. 12, according to data from Bloomberg Intelligence.

The new ETFs may be cheaper than previous fund options, such as the ProShares Bitcoin Strategy ETF (BITO) — the first bitcoin futures ETF, with an expense ratio of 0.95%. The Grayscale Bitcoin Trust (GBTC) charged 2.0% before converting to a spot bitcoin ETF, and now has fees of 1.5%.

In Canada, investors have had access to both spot bitcoin and spot ether ETFs since February 2021, and since then the country's global market share in spot crypto ETFs has grown to 46%, according to CoinGecko.

In March 1990, the Toronto Stock Exchange listed the Toronto 35 Index Participation Fund. The fund tracked the TSX 35 index under the ticker symbol “TIPs.” It currently exists as the iShares S&P/TSX 60 Index ETF (XIU). Since the launch of TIPs, the Canadian ETF market has seen remarkable growth.

Traders started to look for ways to purchase all the components of an index in a single trade. A solution came in 1993 with the launch of the first ETF in the United States, the SPDR SPY which, to this day is possibly the most well-known ETF in the world.