Investors seeking diversification in the cryptocurrency market can now purchase a cryptocurrency ETF that includes both bitcoin and ether. ETF trades on the Toronto Stock Exchange.
Evolve Cryptocurrencies ETF is a market cap-weighted cryptocurrency that holds both bitcoin and ether. The fund currently has about 68% of its holdings in bitcoin and 32% in ether. Bitcoin and ether together account for about 65% of the total cryptocurrency market.
The new ETF will be rebalanced monthly, does not utilize leverage and does not pay for distributions. It will gain exposure to bitcoin and ether by holding the Evolve Bitcoin ETF (EBIT) and the Evolve Ether ETF (ETHR). Although there is no administration fee, the underlying ETFs in the fund have an administration fee of 0.75%.
“EBIT and ETHR give investors exposure to the daily price movements of the US dollar price of Bitcoin and Ether, respectively, by leveraging the benefits of the set-up and redemption processes offered by the exchange-traded fund structure,” Evolve said in a press release.
The creation and redemption process is the underlying plumbing of ETFs, enabling them to be more transparent, cheaper and more tax efficient than mutual funds.
In its first trading day, the Evolve Cryptocurrencies ETF has amassed a paltry $ 2.1 million in assets. Evolve ETF’s two other cryptocurrency funds have about $ 181 million in combined assets under management, according to the company’s website.
While Canada’s crypto-ETF market is on its feet, US investors still have few opportunities to gain exposure to cryptocurrencies in addition to buying them directly, as SEC Chairman Gary Gensler continues to seek strict rules for the crypto market.