Bitcoin and Ethereum combined into single ETF by Evolve
Evolve ETFs, one of the largest ETF companies in Canada, has announced the launch of its first ETF that combines investment into both Bitcoin and Ethereum as well.
Most of the ETFs introduced in different parts of the world generally tend to focus on only one cryptocurrency and this is probably the first time that an ETF combines them both and it will start trading in TSX exchange under the ticker ETC and it is reported to be the first multicurrency ETF in Canada. This new fund will hold both Bitcoin and Ethereum weighted by their market capitalization which is likely to come around 67% for BTC and 33% for ETH. These are the 2 biggest cryptocurrencies in terms of market capitalisation and trading volume as well and it does make sense to try and combine both into a single fundholding.
Though at a high level, both the cryptos might appear to be moving in the same direction at the same time, it must be noted that ETH has been outperforming BTC since the start of the year after being the mute partner for most of 2019 and 2020 as well.
“Bitcoin has established itself as a store of value and is often referred to as digital gold,” said Raj Lala, president, and CEO, Evolve ETFs. “Ether is often referred to as digital oil and has become an essential building block for digital finance including NFTs and other DeFi applications.”
As far as crypto ETFs are concerned, Canada seems to have outdone the US in many ways as many ETFs have invested in cryptos while the SEC in the US continues to remain reluctant to give its approval to any of the crypto-based ETFs as yet. It is reliably learnt that there are so many ETFs that have applied for approval from the SEC but so far, none of them has been approved while Canada has gone ahead with its crypto ETFs which have been welcomed with open arms by the various investors.
But it is also hoped that once the SEC approves the first crypto-based ETF, which it will eventually come around to doing some time in the future, it will open the floodgates for other such ETFs which will be a major boost for the crypto industry and that will begin to bring in even more funds and investments into the industry as a whole.