ETF offers unique risk-managed approach to investing in bitcoin and ether
CI Global Asset Management announces the launch of CI Galaxy Multi-Crypto ETF, which is designed to capture the upside of investing in the world’s two top cryptocurrencies while managing the volatility of these assets.
CI Galaxy Multi-Crypto ETF provides the benefits of cryptocurrency investing with a systematic approach designed to mitigate price volatility.
The ETF begins trading today on the Toronto Stock Exchange under the ticker symbols CMCX.B (Canadian dollar-denominated unhedged units) and CMCX.U (U.S. dollar-denominated unhedged units).
CI Galaxy Multi-Crypto ETF provides exposure to bitcoin and ether, the two largest cryptocurrencies globally by market capitalization. It seeks to reduce the volatility of investing in these digital assets by systematically managing the allocations between the cryptocurrencies and cash.
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The ETF’s portfolio sub-advisor, Galaxy Digital Asset Management (“GDAM”), uses a proprietary momentum-driven trading model that incorporates the price trends of bitcoin and ether in making allocation decisions. The goal is to produce stronger risk-adjusted returns compared to a buy-and-hold investment. GDAM is the Asset Management arm of Galaxy Digital, a diversified financial services firm dedicated to the digital asset and blockchain technology sector.
“CI Galaxy Multi-Crypto ETF makes investing in cryptocurrency easier for advisors and investors,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., CI GAM’s parent company. “The fund provides the benefits of cryptocurrency investing – portfolio diversification, low correlation to other asset classes and high growth potential – with a systematic approach designed to mitigate price volatility.
“And as an ETF, it provides a convenient, secure and cost-effective way to access the world’s two major cryptocurrencies in a single investment.”
The ETF gains exposure to bitcoin and ether by investing in units of CI Galaxy Bitcoin ETF (TSX: BTCX) and CI Galaxy Ethereum ETF (TSX: ETHX). It charges a management fee of 0.50%, the world’s lowest for a diversified cryptocurrency fund. CI GAM has also committed to capping the ETF’s management expense ratio at just 1.05%.
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“As the crypto markets continue to mature, investors are increasingly seeking more sophisticated products that offer both diversification and volatility-reducing features, which is precisely why we created the CI Galaxy Multi-Crypto ETF,” said Steve Kurz, Global Head of Asset Management at Galaxy Digital. “We are dedicated to driving the adoption of digital assets and look forward to working in tandem with CI GAM as we continue to expand access to this disruptive sector of the economy.”
CI Galaxy Multi-Crypto ETF is the latest addition to CI GAM’s industry-leading suite of cryptocurrency solutions, which includes three ETFs, as well as mutual funds: CI Bitcoin Fund and CI Ethereum Fund. All of these solutions are eligible for registered accounts.
“Since we introduced our first bitcoin investment fund in 2020, cryptocurrencies have rapidly gained greater mainstream acceptance and investor interest,” Mr. MacAlpine said. “CI GAM is committed to building on our capabilities in digital assets and to making it easier for investors to access this growing and increasingly important asset class.”
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