EvolveETF – a Canadian ETF provider – has just launched Canada’s first multi-cryptocurrency exchange-traded fund. The product is backed by the two largest cryptocurrencies by market cap: Bitcoin and Ethereum.
Crypto Diversification in an ETF
As announced this week from EvolveETF’s site, the new fund has already begun trading on the Toronto Stock Exchange (TSX) under ticker symbols “ETC” (CAD Unhedged Units) and “ETC.U” (USD Unhedged Units).
ETC will not be backed by Bitcoin or Ethereum directly. Rather, it will hold shares of EvolveETF’s existing single-crypto funds. These include their Bitcoin and Ethereum ETFs “EBIT” and “ETHR,” respectively.
Their balance of each token will be “based on [Bitcoin and Ethereum’s] market capitalization weightings” and will be rebalanced monthly. Right now, their weightings should be roughly one-third Ethereum and two-thirds Bitcoin.
Raj Lala, president, and CEO of EvolveETFs, outlined why he sees these two particular crypto assets as valuable