Best Ethereum ETFs in Canada 2026 (ETHX vs ETHH)

Ethereum has cemented itself as the second-largest cryptocurrency by market capitalisation, and for many Canadian investors, the safest route to gain exposure isn't buying the coin directly, but through a regulated exchange-traded fund (ETF). In 2026, the choice largely boils down to two heavyweights: the Purpose Ethereum ETF (ETHH) and the CI Galaxy Ethereum ETF (ETHX). This guide breaks down the differences, costs, and tax implications to help you decide which is the best Ethereum ETF in Canada for your portfolio.

Why Choose an Ethereum ETF in Canada?

Buying Ethereum directly involves managing a digital wallet, safeguarding private keys, and dealing with cryptocurrency exchanges that may have varying levels of security and customer service. An ETF solves these headaches. When you buy an Ethereum ETF on the Toronto Stock Exchange (TSX), you are buying shares in a fund that physically holds the underlying cryptocurrency. This means you get exposure to the price movement of Ether without the technical burden of custody.

Furthermore, Canadian Ethereum ETFs are held in a standard brokerage account, meaning they can be easily tucked inside a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). This is a massive advantage for Canadian investors, as any capital gains from selling the ETF are tax-free inside a TFSA, or tax-deferred inside an RRSP [1].

The Two Titans: ETHX vs ETHH

As of 2026, the two most prominent physically-backed Ethereum ETFs available to Canadian investors are managed by CI Global Asset Management and Purpose Investments. While they achieve the same goal—tracking the price of Ether—they have distinct structural and fee differences.

CI Galaxy Ethereum ETF (ETHX)

ETHX is managed by CI Global Asset Management in partnership with Galaxy Digital. It is the largest Ethereum ETF in Canada by assets under management (AUM), providing significant liquidity for traders.

• Management Fee: 0.40%
• Custody: Gemini Trust Company (a regulated New York trust company)
• Structure: Conventional ETF
• Currency: Trades in Canadian Dollars (C$)
• Ticker: ETHX.B (CAD) / ETHX.U (USD)

ETHX is often preferred by long-term holders because of its slightly lower management expense ratio (MER) compared to its main competitor. The fund holds physical Ether in cold storage, insured by a third-party policy [2].

Purpose Ethereum ETF (ETHH)

ETHH is managed by Purpose Investments, the first company in the world to launch a physically settled Bitcoin ETF. It remains a top contender in the Ethereum space.

• Management Fee: 0.50%
• Custody: Gemini Trust Company (same as ETHX)
• Structure: Conventional ETF
• Currency: Trades in Canadian Dollars (C$)
• Ticker: ETHH (CAD) / ETHH.U (USD)

While ETHH has a slightly higher fee (0.50% vs 0.40%), it offers a unique feature that some investors appreciate: the ability to easily redeem shares for the underlying physical Ethereum. This is a structural advantage if you ever want to take direct custody of the coin without selling your position on the open market.

Key Differences at a Glance

Feature	ETHX (CI Galaxy)	ETHH (Purpose)
Management Fee	0.40%	0.50%
AUM (Approx)	Larger	Smaller
Redemption	Cash only	Cash or Physical Ether
Custodian	Gemini	Gemini
Best For	Cost-conscious long-term holders	Investors wanting physical redemption

Tax Implications for Canadian Investors

One of the most critical considerations for Canadian investors is how these ETFs are treated by the Canada Revenue Agency (CRA). Because ETHX and ETHH are structured as conventional ETFs (not trusts that issue T3 slips), they are generally treated as "capital property."

When you sell your shares, any profit is treated as a capital gain, of which only 50% is taxable [3]. This is significantly more tax-efficient than trading cryptocurrency directly, where the CRA may consider frequent trades as business income (100% taxable).

As mentioned earlier, holding these ETFs inside a TFSA or RRSP is the most efficient strategy. Inside a TFSA, all gains are tax-free. Inside an RRSP, gains are tax-deferred until withdrawal. This is a key reason why Canadian investors flock to these products.

Which One Should You Buy in 2026?

The choice between ETHX and ETHH comes down to your investment strategy and holding period.

Choose ETHX if:

• You are a cost-conscious long-term holder. The 0.10% difference in fees adds up over a decade.
• You want the highest liquidity and tightest bid-ask spreads. ETHX is the largest fund, making it easier to trade large volumes without slippage.
• You have no intention of ever taking physical delivery of the Ethereum.

Choose ETHH if:

• You value the optionality of being able to redeem shares for physical Ether.
• You prefer the brand and structure of Purpose Investments, the pioneer in this space.
• You are trading smaller amounts where the fee difference is negligible.

Are There Other Options?

While ETHX and ETHH are the main physically-backed funds, Canadian investors also have access to:

• Ether Capital Corporation (ETHC): This is not an ETF but a publicly-traded corporation that holds Ethereum. It trades on the NEO Exchange. It may have different tax implications and is generally considered more complex than an ETF.
• 3iQ Ether Fund (QETH): Another physically-backed fund, but it is structured as a closed-end fund, which can sometimes trade at a premium or discount to its net asset value (NAV).

For most retail investors, sticking with the open-ended ETFs (ETHX or ETHH) is the simpler, more transparent choice.

Conclusion and Next Steps

For Canadian investors looking for the best Ethereum ETF in 2026, the decision between ETHX and ETHH is a close call. Both offer secure, regulated exposure to the second-largest cryptocurrency. If you are focused on minimizing costs over the long term, ETHX is the clear winner with its 0.40% fee. If you value the flexibility of potential physical redemption, ETHH is an excellent choice.

Before buying, check your brokerage platform to see which fund offers the best liquidity and lowest bid-ask spread in your account. And remember, for maximum tax efficiency, always use your TFSA or RRSP to hold these assets.