TORONTO-(BUSINESS WIRE)-CI Global Asset Management (“CI GAM”) announced today that it is capping the management expense ratio (“MER”) of CI Galaxy Bitcoin ETF (TSX: BTCX) and CI Galaxy Ethereum ETF (TSX: ETHX) at 0.95%, effective immediately.
This move confirms that the two ETFs will have the lowest published MER caps of any bitcoin or Ether ETF globally. The two ETFs already have the lowest management fee of any bitcoin or Ether ETF at 0.40% and the change is to provide investors with greater fee certainty and transparency. The MER represents the total of the management fee, operating expenses and taxes. With respect to ETHX, the management fee continues to be waived until June 15, 2021, as previously announced.
“CI GAM is providing investors with the world’s lowest-cost means of gaining exposure to Bitcoin and Ether through the convenient ETF structure,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., the parent company of CI GAM.
“Adding this clarity on the maximum fees that investors will pay should enable us to build on our strong momentum. As the funds’ assets grow, the expense ratio will be lower and those savings will be passed on to investors. This move is another step in positioning our firm to be the leader in the democratization of these important, emerging digital asset classes, which are gaining increasing investor interest and acceptance.”
CI Galaxy Bitcoin ETF trades on the TSX under the tickers BTCX.B and BTCX.U. CI Galaxy Ethereum ETF trades on the TSX under the tickers ETHX.B and ETHX.U.
BTCX and ETHX are designed to provide investors with a convenient and expedient way to gain exposure to Bitcoin and Ether, respectively, through an institutional-quality fund platform. BTCX invests directly in Bitcoin with its holdings priced using the Bloomberg Galaxy Bitcoin Index (the “BTC”), which is designed to measure the performance of a single bitcoin traded in U.S. dollars. ETHX invests directly in Ether with its holdings priced using the Bloomberg Galaxy Ethereum Index (“ETH Index”), which is designed to measure the performance of a single Ether traded in U.S. dollars. Both indexes are owned and administered by Bloomberg Index Services Ltd.
CI GAM is the manager of the ETFs and Galaxy Digital Asset Management (“GDAM”) serves as the sub-advisor. As sub-advisor, GDAM executes bitcoin and Ether trading on behalf of the ETFs. GDAM is the Asset Management arm of Galaxy Digital, a diversified financial services firm dedicated to the digital asset and blockchain technology sector. The GDAM team has deep institutional experience managing third-party capital across traditional and alternative asset classes, strong relationships with institutional service providers and counterparties, and exceptional connectivity throughout the blockchain and digital assets ecosystem.
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 GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately C$240.6 billion in total assets as at March 31, 2021.
CI Galaxy Bitcoin ETF and CI Galaxy Ethereum ETF (each, an “ETF”) are exchange-traded mutual funds that invest in the digital currency bitcoin and Ether, respectively. An investment in the ETFs 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 ETFs is considered high risk.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (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 ETF is contained in its prospectus. ETFs are not guaranteed; their values change frequently and past performance may not be repeated.
This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. 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.
Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
CI Global Asset Management is a registered business name of CI Investments Inc.
©CI Investments Inc. 2021. All rights reserved.