ETF offers unique risk-managed approach to investing in bitcoin and ether
TORONTO (February 1, 2022) – CI Global Asset Management (“CI GAM”) 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.
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.
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%.
“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.”
More information about CI GAM’s cryptocurrency solutions is available on its website.
About Galaxy Digital
Galaxy Digital Capital Management LP is an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) (“Galaxy Digital”). Galaxy Digital is a diversified financial services and investment management company in the digital asset, cryptocurrency and blockchain technology sector, and currently operates four distinct business lines, which include: Trading, Asset Management, Principal Investments and Investment Banking. Galaxy Digital’s CEO and Founder is Michael Novogratz. Galaxy Digital is headquartered in New York City, with offices in Chicago, San Francisco, London, Tokyo, Hong Kong, the Cayman Islands (registered office) and New Jersey. Additional information about Galaxy Digital’s businesses is available on www.galaxydigital.io.
About CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI Global Asset Management is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an integrated global asset and wealth management company with approximately $384.1 billion in assets as of December 31, 2021.
CI Galaxy Multi-Crypto ETF (the “ETF”) is an exchange-traded mutual fund that invests in the digital assets. An investment in the ETF may be considered speculative and is not intended as a complete investment program. It is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. An investment in the ETF is considered high risk.
Commissions, management fees and expenses all may be associated with an investment in ETFs. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Please read the prospectus before investing. Important information about an exchange-traded fund (ETF) is contained in its prospectus. ETFs are not guaranteed; their values change frequently and past performance may not be repeated.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange-traded funds (ETFs) managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. Some conditions apply.
The forward-looking statements are not historical facts but reflect the current expectations of CI GAM regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. CI GAM believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, CI GAM can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. CI GAM undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.
CI Global Asset Management is a registered business name of CI Investments Inc.
©CI Investments Inc. 2022. All rights reserved.
Vice-President, Corporate Communications