ETHX vs. ETHH: Which Ethereum ETF Is the Better Buy for Canadian Investors?

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When it comes to gaining exposure to Ethereum without directly managing cryptocurrency, Ethereum ETFs have become a go-to option for Canadian investors. With the rise of blockchain innovation and digital asset adoption, two major players have emerged in Canada’s ETF landscape: the CI Galaxy Ethereum ETF (TSX: ETHX.B) and the Purpose Ether ETF (TSX: ETHH.B). Both offer a regulated, tax-efficient way to invest in Ethereum through traditional brokerage accounts.

But which one is the smarter long-term choice? In this in-depth comparison, we’ll break down key factors like fees, fund size, holdings, and performance to help you make an informed decision.

Understanding Ethereum ETFs for Canadian Investors

Ethereum ETFs allow investors to gain exposure to the spot price of Ethereum (ETH) without the complexities of buying, storing, or securing crypto directly. These funds hold actual Ethereum in offline cold storage, managed by trusted custodians, and issue shares that trade on the Toronto Stock Exchange (TSX) during regular market hours.

👉 Discover how Ethereum ETFs can simplify your crypto investing journey.

One of the biggest advantages? You can hold these ETFs in tax-advantaged accounts like a TFSA or RRSP. When you sell within these accounts, you pay zero capital gains tax, making them an efficient vehicle for long-term wealth building.

Now, let’s dive into how ETHX.B and ETHH.B compare across critical metrics.

Management Expense Ratio (MER): Which ETF Costs Less?

The management expense ratio (MER) is a crucial factor in long-term returns. It represents the annual fee charged by the fund, deducted directly from its net asset value (NAV). Even small differences in MER can compound over time.

ETHX.B has a clear edge, costing 11 basis points less annually than ETHH.B. On a $10,000 investment, that’s a savings of **$11 per year**—and over a decade, those savings add up. Lower fees mean more of your returns stay in your pocket, making ETHX.B the more cost-efficient option.

Fund Size and Liquidity: Which ETF Is More Established?

Fund size—measured by assets under management (AUM)—is a strong indicator of investor confidence and market liquidity. Larger funds tend to have tighter bid-ask spreads, better trading volume, and lower risk of delisting.

As of the latest data:

ETHX.B not only leads in total assets but also reflects stronger adoption among Canadian investors. A larger AUM often translates to greater stability and easier share trading, especially for buy-and-hold investors who value reliability.

👉 See why investor trust matters when choosing a crypto ETF.

Holdings and Exposure: How Much Ethereum Do You Own Per Share?

Both ETFs provide direct exposure to Ethereum by holding the actual asset in cold storage. However, the amount of ETH represented per share differs slightly.

While both are close, ETHX.B offers slightly more Ethereum per share, meaning fewer shares are needed to accumulate a full ETH over time. This minor difference can simplify portfolio tracking and rebalancing.

It’s also important to note that neither ETF is currency-hedged. Their prices are influenced by fluctuations in the CAD-USD exchange rate, which can add volatility—especially during periods of currency instability.

Historical Performance: How Have They Fared?

While past performance doesn’t guarantee future results, comparing returns helps assess tracking accuracy and fund efficiency.

As neither ETF has a full year of performance history, we’ll examine year-to-date (YTD) returns against the spot price of Ethereum:

  1. ETHX.B: -22.41%
  2. ETHH.B: -22.43%
  3. Ethereum (CAD): -19.67%
  4. Ethereum (USD): -19.51%

Both ETFs performed nearly identically, but they slightly underperformed the underlying spot price of Ethereum. This gap—known as tracking error—is likely due to management fees, trading costs, and currency conversion effects.

Despite the small lag, their close alignment with ETH’s price movement shows both funds are effectively delivering exposure to the cryptocurrency.

Key Considerations for Canadian Investors

Tax Efficiency in TFSAs and RSPs

One of the biggest benefits of Ethereum ETFs is their compatibility with registered accounts. Holding ETHX or ETHH in a TFSA or RRSP shields your gains from taxation upon withdrawal—unlike direct crypto trading, where every sale can trigger a taxable event.

Security and Custody

Both funds store Ethereum in cold storage, reducing exposure to hacks or online threats. This institutional-grade security is a major advantage for risk-averse investors who want crypto exposure without managing private keys.

“Not Your Keys, Not Your Coins”

While convenient, ETFs mean you don’t own Ethereum directly. You own shares in a fund that holds ETH on your behalf. For maximum control, consider using a hardware wallet for direct ownership outside registered accounts.

Frequently Asked Questions (FAQ)

Q: Can I hold Ethereum ETFs in my TFSA or RRSP?

A: Yes! Both ETHX.B and ETHH.B are eligible for TFSAs, RRSPs, and other registered accounts, making them tax-efficient ways to invest in crypto.

Q: Do these ETFs pay dividends?

A: No. Ethereum ETFs do not generate income or pay dividends. Returns are based solely on price appreciation of the underlying asset.

Q: Are these ETFs backed by real Ethereum?

A: Yes. Both funds hold actual Ethereum in cold storage, providing 1:1 exposure to the spot price of ETH.

Q: What causes the tracking error between the ETFs and Ethereum’s price?

A: Tracking error comes from management fees, trading costs, currency fluctuations, and operational expenses deducted from the fund’s NAV.

Q: Is one ETF safer than the other?

A: Both are regulated and use secure custodians. However, ETHX.B’s larger AUM and lower fees make it slightly more resilient and cost-effective.

Q: Should I buy ETH directly instead of an ETF?

A: If you want full control and are comfortable with self-custody, buying ETH directly may be better. For simplicity and tax benefits in registered accounts, ETFs like ETHX.B are ideal.

👉 Learn how to balance ETF convenience with direct crypto ownership.

Final Verdict: ETHX.B vs. ETHH.B

After evaluating fees, fund size, holdings, and performance, ETHX.B emerges as the better choice for most Canadian investors.

It offers:

While both ETFs deliver solid exposure to Ethereum, ETHX.B’s cost efficiency and market leadership make it the preferred option for long-term, buy-and-hold investors.

Core Keywords:

By focusing on low fees, tax efficiency, and reliable custody, Canadian investors can confidently use ETHX.B as a strategic entry point into the world of digital assets—without sacrificing control over their financial future.