Canada’s CI Global Asset Management launches Blockchain and Metaverse ETFs
CI Global Asset Management has announced the launch of ETFs focused on investment opportunities in two digital megatrends, which the firm says are transforming society today – blockchain technology and the metaverse.
CI Galaxy Blockchain ETF and CI Galaxy Metaverse ETF begin trading today on the Toronto Stock Exchange (“TSX”) under the tickers CBCX and CMVX, respectively. Each has an annual management fee of 0.50 per cent.
“Blockchain and the metaverse are two extraordinarily powerful trends that are set to dramatically change our society and how we do business,” says Roy Ratnavel, Executive Vice-President and Head of Distribution for CI GAM. “Our ETFs provide investors with low-cost, convenient and diversified exposure to the growth potential of these rapidly developing, leading-edge sectors.”
The firm writes that blockchain, the technology that underlies cryptocurrencies such as bitcoin and Ether, has supported the development of trillions of dollars’ worth of digital assets and generated intense investor interest. Moreover, blockchain has a multitude of additional applications that are expected to attract further investment and development.
The firm writes that the metaverse is an immersive, interactive digital universe made possible by advancements in the internet and virtual and augmented reality technology. The metaverse promises to transform how people interact, work and play, thereby presenting exciting opportunities for investors.
The ETFs track underlying indexes created by Alerian S-Network Global Indexes (“Alerian”), an index builder focused on creating innovative index-based solutions, in partnership with Galaxy Digital Holdings Ltd. (“Galaxy Digital”), a leading provider of financial and investment management services in the cryptocurrency industry.
“We’re committed to increasing access to every investable corner of the digital asset ecosystem,” says Steve Kurz, Global Head of Asset Management at Galaxy Digital. “We’re pleased to deepen our relationships with CI GAM and Alerian as we expand our partnerships to include these two innovative ETFs.”
"We are excited to collaborate with CI GAM and Galaxy Digital to meet the demand for more innovative exposures in the metaverse and the broad-based digital asset space," added Rob Hughes, Chief Commercial Officer of Alerian.
“With CBCX and CMVX, we continue to build on our capabilities in crypto and thematic ETFs as we seek to provide investors with convenient and inexpensive exposure to the world’s most innovative companies and themes,” says Ratnavel. “We’ve set a fast pace for product development in 2022, having previously launched multi-crypto, digital security and biotechnology ETFs. Today, CI GAM has one of the industry’s most comprehensive ETF lineups with over 80 passive, smart beta, covered call and actively managed mandates.”
CI Galaxy Blockchain ETF (CBCX) seeks to replicate, to the extent reasonably possible, the performance of the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity Hedged to CAD Dollars Index (the “CBCX Index”), net of expenses. The CBCX Index intends to track the performance of companies that are engaged in the development of blockchain technologies, as well as businesses operating in and developing the blockchain ecosystem.
Specific sectors targeted by CBCX include cryptocurrency miners, cryptocurrency buyers and companies that enable the blockchain ecosystem, such as those that facilitate the buying, selling and transfer of cryptocurrencies, those that provide custody services for cryptocurrency assets, and those that provide equipment used in cryptocurrency mining.
CI Galaxy Metaverse ETF (CMVX) seeks to replicate, to the extent reasonably possible, the performance of the Alerian Galaxy Immersive Digital Worlds Hedged to CAD Dollars Index (the “CMVX Index”), net of expenses. The CMVX Index intends to track the performance of companies that are materially engaged in the interactions, enablement and connectivity to the metaverse.
Companies targeted by CMVX include those involved in:
• Augmented reality and virtual reality enablement – enabling the development and usage of augmented or virtual reality devices
• Connectivity – providing the hardware and software needed to power the metaverse
• Gaming and entertainment – developing live and multi-user game and entertainment systems
• Payments – facilitating digital asset transactions
• Social media – offering social media platforms that allow users to share their own content.