Alternative Investments/Digital: Its Raining Crypto ETF Approvals In Canada, But Fee Wars Erupt In Ether
Canada approved three ether ETFs last week, and one bitcoin ETF Monday.
Canadian regulators cleared three Ethereum ETFs last week. These were funds from Purpose Investments, CI Global Asset Management, and Evolve ETFs that are expected to commence trading today.
Meanwhile, the fourth bitcoin ETF to be approved by Canada, the 3iQ CoinShares Bitcoin ETF, commenced trading on the TSX effective Monday.
Recall that Canada stole a march on its southern neighbor by flagging off bitcoin ETFs in February. The first, the Purpose Bitcoin ETF (BTCC), launched in late February and has already collected over $1 billion in assets.
Unsurprisingly, the (surfeit?) of new ETFs has resulted in a chase for investors’ dollars, and fee cuts have been announced.
CI Galaxy Ethereum ETF
CI Global Asset Management announced Monday that it is waiving the full 0.40% management fee effective immediately through June 15, 2021, on the CI Galaxy Ethereum ETF.
“While ETHX offers the world’s lowest management fee for an Ether ETF at 0.40%, this voluntary management fee waiver will result in a 0% management fee until June 15, 2021, boosting value to investors at launch,” CI Global said. “Following June 15, 2021, the effective management fee of ETHX will revert back to 0.40% of net asset value, plus applicable sales taxes.”
Ether ETF from Evolve
Evolve Funds Group Inc. announced Saturday it is waiving the full 0.75% management fee effective immediately and will remain in full force and effect until May 31, 2021, on the Ether ETF.
That leaves the Purpose Ether ETF, which charges a management fee of 1%, as the most expensive Ether ETF in Canada.
“Investors are particularly fee conscious when new ETFs come to market,” said Todd Rosenbluth, director of ETF research for CFRA Research to Bloomberg. “Asset managers want to gather assets quickly to ensure there is sufficient liquidity as larger potential investors consider the fund.”
Related Story: New Ethereum ETFs Launch In Canada
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