Crypto ETFs in Canada and Brazil tumbled during Monday session

Quick Take

  • The US has yet to approve spot-based crypto ETFs, but Canada and Brazil did in early 2021.
  • Those products traded down starkly today, in line with the wider fallout in the price of bitcoin and turmoil in the equities markets.

Exchange-traded funds (ETFs) holding bitcoin and ether saw steep drop-offs in Canadian and Brazilian markets, in line with the wider fallout seen in crypto and equities markets. 

Bitcoin's price fell to lows not seen since December 2020 on Monday, dropping over 10% in a day and trading at around $23,400 at the time of writing.

That trend led crypto-affiliated stocks to see significant fallout. In the US, regulators have yet to approve spot-based crypto ETFs to trade on a regulated exchange, but neighbors to the north and south have, and those products saw significant fallout today. 

The Purpose Bitcoin ETF (BTCC), the Evolve Bitcoin ETF (EBIT) and the CI Galaxy Bitcoin ETF (BTCX.B), all bitcoin-based exchange-traded funds listed on the Toronto Stock Exchange, fell about 17% at open, according to data from TradingView. 

Canada began green-lighting bitcoin ETFs in February 2021 when it gave the Purpose Bitcoin ETF its blessing to list on the Toronto Stock Exchange. Others, like Evolve and Galaxy, soon followed and saw some success as financial products not available in the US markets. 

But these products fell sharply today as crypto and equities saw considerable turbulence. Evolve's EBIT fell 19.25% today, dropping from 13.87 CAD to 11.39 at open. At close EBIT had fallen further to 11.20 CAD. 

CI and Galaxy's BTCX.B fell further, down 19.64% at close after a precipitous drop from 5.55 CAD to 4.55 CAD at open. At close it was changing hands at 4.46 CAD. 

BTCC saw a similar drop, down 20.62% at close, trading down at 4.62 CAD. At open, it fell from 5.82 CAD to 4.77 CAD. 

Brazil approved its first bitcoin ETF soon after Canada, in March of 2021. That product, the QR Asset Management's QBTC11 trades on Brazil's main stock exchange, the B3. It saw similar fallout, dropping 17% at open from 9.20 BRL to 7.63 BRL. So far in the trading day, it's made up some ground to 7.8 BRL at time of publication. 

Ethereum-based products on TSX saw the worst of it, cratering nearly about 25% at open. Purpose, Evolve and CI and Galaxy all began listing Ether-based funds shortly after the Ontario Securities Commission allowed bitcoin ETFs to trade. 

Purpose's ETHH fell from 7.23 CAD to 5.28 CAD at open, ultimately changing hands at 5.28 CAD at close, a nearly 27% drop.

Evolve's ETHR similarly fell more than 25.5% by closing, with a steep drop at open from 7.58 CAD to 5.66 CAD, trading at 5.64 CAD at close.

CI and Galaxy's ETHX.B fell about 25.8% over the course of the day, opening with a drop from 7.75 CAD to 5.73 CAD, and traded at 5.75 CAD at close.  

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