As of 2024, the market for cryptocurrency exchange-traded funds (ETFs) in Canada has witnessed substantial growth, offering investors a strategic pathway to gain exposure to leading digital currencies such as Bitcoin and Ethereum. These investment vehicles have become particularly appealing as they allow individuals to incorporate cryptocurrency into tax-advantaged accounts, including tax-free savings accounts and registered retirement savings plans, a feature first introduced with the launch of Bitcoin and Ethereum ETFs in Canada in 2021.

Investor demand for Bitcoin ETFs has surged markedly since their inception, driven by the liquid and exchange-traded nature of these funds. According to Ross Mayfield, an investment strategy analyst at Robert W. Baird & Co., there is compelling interest for products that replicate the characteristics individuals appreciate about ETFs. The growth trajectory of Bitcoin ETFs suggests potential for the asset class to eclipse the precious metals ETF market, with projections suggesting the Bitcoin ETF category could exceed $300 billion in assets, as indicated by Sean Farrell of Fundstrat in mid-2023.

Notably, ETFs focused on Ethereum have gained significant traction as well. Given that Ethereum is the leading blockchain technology with Ether being the second most prominent cryptocurrency, financial products that provide exposure to this asset have become a focal point for many investors.

The following outlines the 13 principal Canadian cryptocurrency ETFs available for investment, arranged by their assets under management as of August 23, 2024:

1. **Purpose Bitcoin ETF (TSX:BTCC)**
– Assets Under Management: C$2.3 billion
– Launched in February 2021, the Purpose Bitcoin ETF is recognized as the first physically settled Bitcoin ETF, enabling investors to trade Bitcoin without necessitating a digital wallet.

2. **CI Galaxy Bitcoin ETF (TSX:BTCX.B)**
– Assets Under Management: C$754.17 million
– This fund, initiated in March 2021 through a partnership with Galaxy Fund Management and CI Global Asset Management, offers investors an institutional-quality platform for Bitcoin exposure, with an attractive management fee of 0.4 percent.

3. **Fidelity Advantage Bitcoin ETF (TSX:FBTC)**
– Assets Under Management: C$506.30 million
– As the latest addition, launched in November 2021, this fund guarantees its Bitcoin assets are stored securely at Fidelity’s facilities, now with a competitive management fee of 0.39 percent.

4. **CI Galaxy Ethereum ETF (TSX:ETHX.B)**
– Assets Under Management: C$455.29 million
– This cryptocurrency ETF launched concurrently with two others in April 2021, providing exposure to Ethereum’s price based on its cold storage holdings.

5. **Purpose Ether ETF (TSX:ETHH)**
– Assets Under Management: C$369.30 million
– Also initiated in April 2021, it holds Ether assets in cold storage and charges a management fee of 1 percent.

6. **3iQ CoinShares Bitcoin ETF (TSX:BTCQ)**
– Assets Under Management: US$299.41 million
– This March 2021 launched ETF is designed to follow the Bitcoin price movement while retaining a management fee of 1 percent.

7. **Evolve Bitcoin ETF (TSX:EBIT)**
– Assets Under Management: C$223.38 million
– Utilizing a secure approach with experts in the field, it offers Bitcoin exposure and charges a 0.75 percent management fee.

8. **Purpose Bitcoin Yield ETF (TSX:BTCY)**
– Assets Under Management: C$105.5 million
– A unique product that employs a covered call strategy, generating yield while providing Bitcoin exposure through its investments.

9. **Purpose Ether Yield ETF (TSX:ETHY)**
– Assets Under Management: C$63.4 million
– Similar to its Bitcoin counterpart, this fund offers regular distribution through interest earned from lending Ether.

10. **Evolve Ether ETF (TSX:ETHH)**
– Assets Under Management: C$63.04 million
– Launched by Evolve, the fund simplifies direct investment in Ether.

11. **3iQ CoinShares Staking Ether ETF (TSX:ETHQ)**
– Assets Under Management: C$62.3 million
– This ETF provides Ether exposure with a management fee structure akin to the other Ether ETFs.

12. **Evolve Cryptocurrencies ETF (TSX:ETC)**
– Assets Under Management: C$39.09 million
– Evolve’s multi-cryptocurrency ETF, providing exposure to both Bitcoin and Ether based on market capitalization.

13. **Fidelity Advantage Ether ETF (TSX:FETH)**
– Assets Under Management: C$21.4 million
– The most recent Ether ETF introduced in September 2022, maintaining efficient cold storage of its assets.

In summary, the ongoing expansion of cryptocurrency ETFs in Canada highlights a growing investor interest and acceptance of digital assets within regulated financial markets. The diverse offerings of these investment vehicles suggest a promising avenue for individuals seeking to diversify their portfolios in the context of modern finance. In closing, it is paramount for investors to remain informed and consider the risks associated with investing in cryptocurrencies.

For further updates on the cryptocurrency sector, stay connected with the Investing News Network.

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