Best Ether ETFs in Canada (2021): Ethereum Investing For All

This post may contain affiliate links. Please read this disclosure for more details

April 2021 was a busy month for Ether ETFs in Canada with the introduction of not one, but 4, Ethereum ETFs. This follows the successful launch of the first Canadian Bitcoin ETFs just a few months earlier.

Ether is the second most capitalized digital currency, second only to Bitcoin. With the introduction of the ETFs, Canadians can have an easy and convenient way to invest in Ether through their brokerage accounts in both registered and non-registered accounts.

US investors can also invest in the Ethereum ETFs through a brokerage that provides access to stocks and ETFs listed in Canada.

This post provides an overview of the best Ethereum ETFs in Canada, their key features, how to invest in them and the benefits and drawbacks.

Top Canadian Ethererum ETFs

Here are the best Ether ETFs available in Canada, sorted by their asset under management at the time of writing:

1.CI Galaxy Ethereum ETF (ETHX)

  • Ticker: ETHX
  • Fees: 0.40%
  • Asset Under Management (AUM): C$294 Million
  • Currencies: CAD & USD
  • Listing Date: April 16, 2021
  • TFSA/RRSP Eligible: Yes

CI Galaxy Ethereum ETF (ETHX) was launched in April 2021 by CI Investments in partnership with Galaxy Digital Capital Management LP, the Portfolio Manager of the ETF. The Ether

It is positioning itself as “the world’s first Ether offering with the world’s lowest management fee.” At just 0.40%, ETHX has the lowest management fee among the Ether ETFs in Canada and it has waived the fees until June 15th, 2021.

ETHX’s MER is capped at 0.95%, which is much lower than Purpose Investment’s 1.50% or 3iQ’s 1.25%.

CI Galaxy Ethereum ETF (ETHX) is listed on the Toronto Stock Exchange and offers both a CAD and USD variant of the ETF:

  1. CAD Unhedged: ETHX.B
  2. US Dollars: ETHX.U

2.Purpose Ether ETF (ETHH)

  • Ticker: ETHH
  • Fees: 1.00%
  • Asset Under Management (AUM): C$135 Million
  • Currencies: CAD & USD
  • Inception Date: April 19, 2021
  • TFSA/RRSP Eligible: Yes
  • Ether Holding (May 7, 2021): 31,395.4

The Purpose Ether ETF (ETHH) started trading just a few days after CI Galaxy Ethereum ETF (ETHX), but it also markets itself as the “world’s first physically settled Ether ETF.”

Since its introduction on April 19, 2021, it has grown its asset under management (AUM) to C$135 million, with an Ether holding of over 31,000 as at May 7, 2021.

It is traded on the Toronto Stock Exchange (TSX) and available in 3 different variants with different ticker symbols:

  1. CAD Non-Currency Hedged: ETHH
  2. CAD Currency Hedged: ETHH.B
  3. USD Non-Currency Hedged: ETHH.U

The management fee is 1.00%, but the MER or total cost of the Ether ETF is not known yet. Purpose Investment has, however, capped it at 1.50% and any savings in fees will be passed to the ETF holders.

How to Invest in Purpose Ether ETF

Interested investors can buy the ETF through their existing brokerages and pay the same trading commissions as any other ETF.

But you can save some fees by using a brokerage or trading app that offers commission-free ETF purchases.

Questrade is a full-service brokerage and they allows free ETF purchases on their platform, though there’s a charge for selling ETFs and trading stocks. New users can get $50 in trade rebate using this promo code.

Wealthsimple Trade is another great option. It is Canada’s first commission-free trading app that provides investors with zero fees on ETF and stock buys or sell. Get a $10 welcome bonus using this referral link.


3. Evolve Ether ETF (ETHR)

  • Ticker: EBIT
  • Mgt Fees: 0.75%
  • Asset Under Management (AUM): C$32.3 Million
  • Currencies: CAD & USD
  • Listing Date: April 20, 2021
  • TFSA/RRSP Eligible: Yes

­Evolve Ether ETF (ETHR) started trading about the same time as the CI Galaxy Ethereum ETF and Purpose Ether ETF, but its net asset value is much lower.

The ETF invests only in Ether and has a management fee of 0.75% that is waived until May 31, 2021. Like the other Ethereum ETFs on this list, returns and performance data are not available yet because the ETFs are still new.

ETHR is traded on the Toronto Stock Exchange (TSX) and available in both CAD and USD with different ticker symbols:

  1. CAD Unhedged: ETHR
  2. US Dollars Unhedged: ETHR.U

How to Invest in Evolve Ethereum ETF (ETHR)

You can buy the Evolve Ethereum ETF and hold it in your investment account through any of the brokerages in Canada.

If you want to keep your investment costs low, you should consider buying the ETF at a brokerage that allows commission-free buying of ETF. You can do this on Wealthsimple Trade and Questrade.

New users can get a welcome bonus of $10 from Wealthsimple Trade and $50 from Questrade.


4. 3iQ CoinShares Ether ETF (ETHQ)

  • Ticker: ETHQ
  • Fees: 1.00%
  • Asset Under Management (AUM): C$14.9 million
  • Currencies: CAD & USD
  • Inception Date: April 19, 2021
  • TFSA/RRSP Eligible: Yes

Last and currently the least Ether ETF by asset under management, we have the 3iQ CoinShares Ether ETF (ETHQ). It is a crypto ETF from 3iQ, the largest digital asset investment fund manager in Canada, and CoinShares, Europe’s largest digital asset fund manager.

ETHQ is an open-ended Ether ETF that is listed on the Toronto Stock Exchange (TSX). Investors can also choose between the USD or CAD versions with ticker symbols ETHQ.U and ETHQ respectively.

The 3iQ CoinShares Ether ETF has a management fee of 1.0% and the MER has been capped at 1.25%.


Which Ethereum ETF should you pick?

The Canadian Ethereum ETFs have similar features: they all invest 100% in Ether, store their holding in cold storage and have both CAD and USD variants.

They are still new so performance and returns data are not available, so we can’t compare using that criteria.

One point of differentiation is the cost or management fees. CI Galaxy Ethereum ETF (ETHX) has the lowest fee, and the MER is capped at 0.95%. Going by fees alone, ETHX is the best Canadian Ether ETF.

If you need to hedge the currency risk though, the only ether ETF with that feature is the CAD Currency Hedged Purpose Ether ETF (ETHH.B). So your options are limited.

Overall, if you have to pick either a CAD or USD unhedged Ether ETF, the CI Galaxy Ethereum ETF (ETHX) currently has the best offering in Canada.

Pros and Cons of Canadian Ether ETFs

Pros

Here are a few benefits of holding an Ethereum ETF instead of buying Ether directly through a cryptocurrency trading app.

  • Exposure to Ether in registered accounts: Ether ETFs make it possible to hold cryptocurrencies in your registered account without flouting CRA’s rules on eligible investments. And by holding your Ether in a more tax-efficient account, you’ll be able to keep more of your gains and reduce your tax liabilities.
  • Convenience: Investing in Ether is easier and more accessible to all investors through the Canadian Ethereum ETFs. You won’t have to sign up with a crypto exchange, keep your wallet safe or worry about any of the peculiar challenges with digital currency investing.
  • Safety: The Ether ETFs are stored in cold storage to eliminate the risk of hacks and theft. This is the equivalent of an individual investor storing their crypto in a hardware wallet.

Cons

Some of the cons and drawbacks to holding the Ether ETFs include:

  • Less Control: If you invest in the ETFs, you can’t transfer the underlying Ether to your own private wallets. They are held by the custodians on your behalf so you have less control.
  • Higher Fees: The Ether ETFs are not cheap with MERs close to 1%. You may be able to save on these fees if you invest directly in Ether through a crypto investing app with lower fees and spread.

How to buy the Ether ETFs in Canada

One of the biggest benefits of investing in bitcoin through an ETF is the opportunity to buy them from your favourite brokerage.

There’s the added trading cost, but you should pay exactly the same fee for trading any other ETF. But you can avoid the extra commissions completely if you invest using a commission-free investing platform.

Two of the best investing platforms for Zero commission ETF purchases in Canada are:

Questrade

Questrade is a full-service brokerage that supports both non-registered and registered accounts. RRSP, TFSA, RESP, Spousal RRSP, Margin account and many other accounts are available.

Buying ETFs is always free with Questrade. However, there is a commission to sell ETFs or trade stocks. Questrade’s trading commission starts at $4.95 but capped at $9.95.

If you’re a client, you can get a $50 trade rebate when you sign up using the button below.

Related Post: Questrade Offer Code (Bonus + Rebate)

Wealthsimple Trade

Wealthsimple Trade is Canada’s first commission-free trading app from Wealthsimple, Canada’s most popular robo-advisor.

Unlike Questrade, both buying and selling ETFs are free. Trading CAD denominated stocks is also free, but there’s a currency conversion cost of 1.5-2% when you trade USD stocks.

This means you can buy any of the CAD Ether ETFs above for free. Buying the USD variants will however be subject to the currency conversion cost.

Get $10 welcome bonus when you sign up using the button below.

Related Post: Wealthsimple Trade Promotion & Referral Code


How to Buy Ethereum in Canada (Crypto Apps & Exchanges)

So what are the alternatives to Ether ETFs in Canada? Here are 3 of the best crypto apps and exchanges available to Canadians that want to but Ether directly:

Newton

Newton is one of the latest crypto investing platforms in Canada, but it is one of the best and cheapest options. Ether, Bitcoin and 8 other cryptocurrencies are currently supported by the crypto exchange.

There are no fees to fund or withdraw from Newton. Trading commissions are not paid directly, but they are included in the prices you see on the app. This is the model used by all the commission-free crypto apps.

Newton has one of the lowest spreads in Canada, generally ranging between 0.50-0.70%. You can expect spreads above 1% and as high as 2% at many of the other Canadian crypto exchanges.

You can get a $25 welcome bonus using this Newton promo code. Check here for my post on Newton Review and Referral Code here.

For low trading fees, also check out NDAX ($10 bonus). Read my full NDAX review here.

Shakepay

Shakepay is another crypto investing app for trading bitcoin and Ethereum in Canadians.

Like Newton, Shakepay does not charge for CAD deposits or withdrawals. Trading bitcoin or Ether is also free. But they make their money through the spread between the actual bitcoin price and the quoted prices you see on the app.

The app also supports peer-to-peer payments to other Shakepay users. And a Shakepay Card is in the pipeline that lets users earn bitcoin as cash back on purchases. You can join the waitlist for the Shakepay Card when you sign up.

Check here for a Shakepay Review and Referral Code or use this link in the button below to get a $10 welcome bonus.

Note: Shakepay is currently paying a welcome bonus of $30 if you sign-up and trade at least $100 by May 18th, 2021.

Wealthsimple Crypto

Wealthsimple started offering bitcoin and Ethereum trading to its users in 2020. There are no direct fees or commission to buy or sell, but it charges an operation fee of 1.5-2% as a spread on the price that is quoted on the app.

Unlike Newton and Shakepay, you can not withdraw your bitcoin or ethereum from the Wealthsimple Crypto account. You’ll have to sell them and withdraw the CAD.

While the available digital coins and features are still limited for now, more features should be added in the future. The crypto app is available within the Wealthsimple Trade app.

Get $10 bonus when you trade your first $100 by signing up using the code below. You can also check here for my full Wealthsimple Crypto Review.


What about Bitcoin ETFs?

Bitcoin ETFs were introduced a few months earlier than their Ethereum ETF counterparts. And they’ve enjoyed wide adoption with 2 of them crossing C$1 billion in asset under administration in less than a month.

The first bitcoin ETF in Canada and worldwide is the Purpose Bitcoin ETF (BTCC) from Purpose Investment. Others soon followed its lead in quick succession.

All the other 3 Ether ETF providers above also have Bitcoin ETFs with the same management fees and MER. You can check this post for the best Bitcoin ETFs in Canada.

Final Thought

Getting started with investing in Ether or bitcoin is now convenient. With the Canadian Ether ETFs, anyone can quickly and cheaply invest in Ether, the digital currency used on the Ethereum blockchain.

Whether you want to invest in CAD or directly in USD, one of the Ethereum ETFs above will get you started. And you can be sure that more ETFs will be added in the future.

Related Post: Best Crypto ETFs in Canada

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

Leave a Comment