CI Global Asset Management has announced the launch of the 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.
The ETF is trading on the Toronto Stock Exchange under the ticker symbols CMCX.B (Canadian dollar-denominated unhedged units) and CMCX.U (US dollar-denominated unhedged units).
CI Galaxy Multi-Crypto ETF is designed to provide exposure to bitcoin and ether, the two largest cryptocurrencies globally by market capitalisation. It seeks to reduce the volatility of investing in these digital assets by systematically managing the allocations between the cryptocurrencies and cash.
The ETF’s portfolio sub-adviser, Galaxy Digital Asset Management 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,” says 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). The firm writes that it charges a management fee of 0.50 per cent, 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 per cent.
“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,” says 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 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,” says MacAlpine. “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.”
