Cryptocurrency flooded the Canadian ETF market last month with 15 ETF listings. The world’s first Ethereum ETFs hit the industry on April 20th. Shortly after, more came to market, with some racing to attract investors by waving management fees.
Investors can choose between CI Galaxy Ethereum ETF, Evolve Ether ETF, Purpose Ether ETF and the 3iQ CoinShares Ether ETF. CI Galaxy waived the full 0.40% management fee on the ETF until June 15, 2021 while Evolve ETFs waived the full 0.75% management fee on the Ether ETF until May 31, 2021. Purpose Ether ETF and 3iQ CoinShares Ether ETF each charge management fees of 1%.
As interest in this asset class surges, Horizons ETFs introduced the BetaPro Bitcoin ETF (HBIT-T) and the BetaPro Inverse Bitcoin ETF (BITI-T). HBIT and BITI provide long and short exposure to Bitcoin through the use of futures contracts and derivatives. These instruments cater to investors who want to bet on the direction of the volatile digital coin. HBIT charges a management fee of 1% and BITI charges a management fee of 1.45%.
In other new launches, Horizons ETFs introduced the Horizons Global BBIG Technology ETF (BBIG-T). The ETF tracks the Solactive Global BBIG Index, which is designed to provide exposure to the performance of publicly listed large-cap and mid-cap global equities in the following industries: secondary battery, biotechnology, internet, and gaming – represented by the acronym, BBIG.
Kimberly Yip Woon Sun is an investment analyst at Inovestor Asset Management