The Canadian cryptocurrency investment landscape is expanding with the introduction of a new exchange-traded fund (ETF) designed to offer diversified exposure to digital assets while emphasizing risk control. The CI Galaxy Multi-Crypto ETF (CMCX) began trading on February 1, 2025, on the Toronto Stock Exchange, marking a significant development for investors seeking regulated, volatility-conscious access to major cryptocurrencies like Bitcoin and Ethereum.
This innovative financial product reflects growing institutional interest in digital assets and responds directly to investor demand for more balanced, model-driven investment solutions in the volatile crypto market.
A Strategic Approach to Crypto Volatility
Unlike traditional crypto ETFs that provide direct or full exposure to a single digital asset, CMCX takes a dynamic, rules-based approach to managing risk. Rather than holding Bitcoin and Ethereum directly, the fund invests in two existing Canadian ETFs: the CI Galaxy Bitcoin ETF (BTCX) and the CI Galaxy Ethereum ETF (ETHX)—both already listed on the Toronto Stock Exchange.
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The core innovation lies in CMCX’s systematic rebalancing mechanism. The fund periodically adjusts its allocation between crypto holdings and cash, aiming to reduce exposure during high-volatility periods while maintaining upside potential during favorable market conditions. This strategy is particularly appealing to risk-averse investors who recognize the long-term potential of blockchain technology but are wary of extreme price swings.
With an expense ratio of just 50 basis points (0.50%), CMCX offers a cost-effective way to gain diversified exposure to the two largest cryptocurrencies by market capitalization.
Backed by Industry Leaders in Digital Asset Management
The CI Galaxy Multi-Crypto ETF is managed by Galaxy Digital Asset Management (GDAM), a subsidiary of Mike Novogratz’s Galaxy Digital—a well-established name in the global blockchain and cryptocurrency finance sector. GDAM brings deep expertise in digital asset research, trading, and portfolio management, having overseen $3.2 billion in assets as of November 2024.
The fund is sponsored by CI Global Asset Management (CIGAM), one of Canada’s leading ETF providers. With over 100 ETFs and more than $15 billion in assets under management as of August 2024, CIGAM ranks as the fifth-largest ETF issuer in Canada. This partnership combines GDAM’s cutting-edge crypto insights with CIGAM’s robust regulatory and distribution infrastructure.
Steve Kurz, Head of Global Asset Management at Galaxy Digital, emphasized that CMCX is the first model-driven digital asset ETF in the market designed specifically to mitigate volatility while preserving growth potential. In an interview with Blockworks, Kurz noted:
“We consistently hear from investors who haven’t yet entered the crypto space that they want two things: diversification across digital assets and reduced exposure to wild price swings. This product is built to deliver exactly that.”
Addressing Key Investor Concerns
Cryptocurrency markets have long been criticized for their unpredictability. While Bitcoin and Ethereum have delivered extraordinary returns over the past decade, their sharp corrections can deter conservative or novice investors. CMCX directly addresses these concerns through:
- Diversification: Exposure to both Bitcoin and Ethereum reduces reliance on any single asset.
- Volatility Mitigation: Automated rebalancing helps dampen the impact of sudden market drops.
- Regulatory Compliance: As a registered ETF in Canada, it offers transparency, liquidity, and investor protections not always available in direct crypto holdings.
These features make CMCX especially attractive to retirement accounts, financial advisors, and institutional portfolios that require structured, compliant investment vehicles.
Expanding the Digital Asset Ecosystem
Galaxy Digital is not stopping with CMCX. The firm has signaled its intent to expand its suite of regulated crypto investment products. In December 2024, it launched a private Solana-focused fund for accredited investors with a minimum commitment of $250,000. Solana, known as one of the fastest public blockchains, supports high-speed decentralized applications and scalable smart contracts—making it a compelling addition to multi-chain investment strategies.
Moreover, Galaxy Digital has filed with the U.S. Securities and Exchange Commission (SEC) for a physically backed Bitcoin ETF in the United States, with Invesco listed as a co-sponsor in the amended application. If approved, this would allow American investors direct, regulated access to Bitcoin through traditional brokerage accounts—similar to how gold is held in commodity ETFs.
While the SEC has yet to approve any physically backed Bitcoin ETFs as of early 2025, Canada continues to lead in crypto-friendly financial innovation. The success of products like CMCX may influence future regulatory decisions south of the border.
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Frequently Asked Questions (FAQ)
Q: What is the CI Galaxy Multi-Crypto ETF (CMCX)?
A: CMCX is a Canadian exchange-traded fund that provides diversified exposure to Bitcoin and Ethereum through existing ETFs (BTCX and ETHX), using automated rebalancing to manage volatility.
Q: How does CMCX reduce crypto market risk?
A: It uses a systematic strategy to shift allocations between crypto assets and cash based on market conditions, helping to lower exposure during turbulent periods.
Q: Who manages and sponsors the CMCX ETF?
A: The fund is managed by Galaxy Digital Asset Management (GDAM) and sponsored by CI Global Asset Management (CIGAM), two established players in asset management.
Q: Is CMCX available to U.S. investors?
A: While listed on the Toronto Stock Exchange, U.S. investors may access it through international brokerage accounts, though they should consult tax and regulatory guidelines.
Q: What are the fees associated with CMCX?
A: The management expense ratio (MER) is 0.50% annually, which is competitive within the actively managed crypto ETF space.
Q: Are there plans for similar ETFs in the U.S.?
A: Yes—Galaxy Digital has filed for a physically backed Bitcoin ETF in the U.S., pending SEC approval. They also plan to explore thematic and single-asset ETFs in the future.
Looking Ahead: The Future of Crypto ETFs
As digital assets mature, investor demand is shifting from speculative trading toward structured, long-term wealth preservation tools. Products like CMCX represent a bridge between traditional finance and the decentralized economy—offering innovation without sacrificing oversight.
With Canada continuing to pioneer regulated crypto investment vehicles, global markets are watching closely. Whether through diversified multi-asset funds or targeted blockchain plays like Solana, the evolution of crypto ETFs promises greater accessibility, stability, and confidence for mainstream adoption.
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