The crypto market has seen a lot of fluctuation. Many cryptocurrencies rose and fell, but only two have truly stood the test of time – Bitcoin and Ethereum.
Bitcoin has the early bird advantage. And even though quite a few cryptocurrencies joined the market between Bitcoin and Ethereum, none of them could hold on to the second spot for longer than Ethereum.
And if you want exposure to Ether through the stock market, the best Ethereum stocks in Canada are your best bet.
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What Do Investors Need To Know About Ethereum?
There are a lot of ways Ethereum differs from other cryptocurrencies, especially Bitcoin. It’s also the only cryptocurrency that’s probably just as well-known as Bitcoin.
Understanding these differences and Ethereum’s potential as a cryptocurrency can help you make a more intelligent decision about investing in this crypto.
- Ethereum is the name for both the blockchain and the native cryptocurrency.
- The consensus mechanism for Ethereum is Proof of Stake, which is quite different from the Proof of Work that Bitcoin uses. It requires a lot less energy than Bitcoin, making it more environmentally friendly, but the requirement to become a validator leads to an inherently consolidated market.
- Ethereum is the most widely used blockchain for Decentralized Financial (DeFi) applications, a rapidly expanding digital ecosystem. The idea is that DeFi applications might become a more readily available alternative to traditional banking for financial products, especially for people not connected to conventional banking.
- For smart contracts, the Ethereum blockchain is still the top choice. It’s also the leading blockchain for NFTs, an asset class that saw a lot of traction in 2020 and 2021.
- Like most cryptocurrencies, Ether is a very high-risk asset, so beware of the potential volatility.
Ethereum is more versatile and useful than Bitcoin. This might be the reason it could stay relevant for far longer than Bitcoin.
Best Ethereum Stocks In Canada
There are only a handful of Ethereum stocks in Canada, and even they can’t be considered solely Ethereum companies. I’ve included some U.S ones below.
1. HIVE Blockchain Stock
- Ticker: HIVE.V
- Niche: Bitcoin and Ethereum Mining
- Forward Dividend Yield: N/A
- Market Cap: $432.84 Million
- Forward P/E Ratio: -6.23
HIVE Blockchain has the distinction of being the only publicly traded miner in Canada that mines both Bitcoin and Ethereum.
It has an impressive presence when it comes to mining operations, with facilities in three countries: Canada, Iceland, and Sweden.
All the mining operations are sustained by renewable power, and the overall mining capacity is quite enormous, i.e., about 6.26 Terahash of Ethereum mining capacity.
For a reference point, the company’s Ethereum production for the month of May 2022 was about 2,694, worth around $6.6 million at the time.
And even though the company is entirely invested in crypto and it is one of the best Ethereum stocks in Canada, it wouldn’t be prudent to gauge this stock simply through the lens of Ethereum.
Bitcoin, both from a mining perspective and as the company’s crypto reserves, carries more weight and might have a harder sway over the stock’s movement.
The stock has experienced two massive spikes since 2015. The first pushed the stock up 18,000% between Aug 2015 and Nov 2017, and the second one propelled the stock over 6,300% between Jan 2020 and Feb 2021.
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2. Intellabridge Technology Stock
- Ticker: KASHF
- Forward Dividend Yield: N/A
- Market Cap: $0
Intellabridge is an excellent example of how Ethereum is used more than just as a cryptocurrency or a trading asset. The company has built a hybrid banking platform with three elements, including blockchain-based DeFi.
The banking platform, called KASH, was initially built on the Ethereum blockchain and still supports most Ethereum assets.
It’s also integrated with Polygon, which is an Ethereum scaling platform that strengthens Intellabridge’s relationship with Ethereum.
KASH is already on its way to its first 100,000 customers. The number of financial transactions on it is still quite low, but if the banking platform takes off in the future, it may contribute to increasing the reach of Ethereum.
This nano-cap stock has just seen one major spike in the last five months, which at its best (July 2020 to July 2021), grew the stock by about 14,000%.
U.S Ethereum Stocks
Apart from these three Canadian Ethereum stocks, there are two US stocks that should also be on your radar.
3. Coinbase Global Stock
- Ticker: COIN
- Niche: Crypto Exchange Platform
- Forward Dividend Yield: N/A
- Market Cap: $0
- Forward P/E Ratio: 0
Coinbase is one of the largest crypto exchanges in the world. Over a quarter of a trillion dollars (USD) worth of crypto assets are on the platform, and it’s used by people in over a hundred countries.
The verified user count reached over 98 million in June 2022. The company has been around since 2012, well before Ethereum came into play in 2015.
The stock, however, is quite new and joined the NASDAQ in April 2021.
It’s the only large-cap stock on this list and has a relatively small connection with Ethereum.
As a crypto exchange, its performance is marked by the crypto market as a whole, but thanks to their popularity and trading volume, Bitcoin and Ethereum are likely to have the largest sway on the company’s and stock’s recovery.
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4. BIT Mining Stock
- Ticker: BTCM
- Niche: Crypto Mining
- Forward Dividend Yield: N/A
- Market Cap: $0
BIT Mining is a Hong Kong-based company that’s engaged in the mining of both Bitcoin and Ethereum. The company has dedicated data centers/mining facilities in Hong Kong and the US (under construction).
It also engages in mining through a large mining pool that serves over two million users worldwide. Its Ethereum mining power is currently at around 4,223 GH.
The stock has been around for a while, and thanks to its mining-based business model, which offers relatively direct exposure to the crypto-assets and their price movement, it has seen multiple spikes since inception.
The most impressive growth spurt that the stock went through was between Dec 2020 and Feb 2021, and in three months, the stock rose over 860%.
Is It Legal To Buy Ethereum In Canada?
Yes. You can buy Ethereum like most other cryptocurrencies in Canada, using a legitimate trader like Wealthsimple Crypto.
However, you can’t own Ethereum in its purest form (as a cryptocurrency) in registered accounts like the TFSA or RRSP, though you can put the best Ethereum stocks in Canada in these accounts.
Where Can I Buy Ethereum Stocks In Canada?
The Ethereum stocks in Canada trade in various markets, like the TSX, TSX Venture Exchange, and Canadian Securities Exchange.
What Is The Best Way To Buy Ethereum In Canada?
There are three ways to buy Ethereum in Canada, and each can be the best option, depending on the type of investor. The three ways are:
Buying Ethereum Directly: It offers you the most direct exposure, though you can’t get any tax benefit from the registered accounts. It can be expensive, and you may have to buy smaller units of crypto if you have limited capital to work with.
Buying Ethereum ETF: It’s the next best thing as these ETFs aim to replicate the performance of the underlying crypto. They can be placed in a registered account, but they also come with their own fees (MER), though it’s usually relatively small.
Buying Crypto Stocks: Even the best Ethereum stocks in Canada will offer you a relatively “diluted” exposure to Ethereum because there are usually other cryptocurrencies in the mix and other factors dictating the performance of the stock.
However, they may also offer outsized returns compared to Ethereum in the bull markets and heavier discounts in the bear ones. They can also be placed in registered accounts and reap tax benefits.
How To Buy Ethereum Stocks In Canada
The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:
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Qtrade
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Questrade
- ETF buys have $0 trading fees
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To learn more, check out my full breakdown of thebest trading platforms in Canada here.
Conclusion
Ethereum can be a powerful investment if bought and sold in the right markets. But to get the best out of this investment, you have to choose the right way to invest in Ethereum.
If you are looking for direct exposure, the crypto itself or the ETFs might prove to be a better fit.
However, the best Ethereum stocks in Canada can be an amazing way to invest in this crypto with the additional benefit of having access to the tax shelter of registered accounts.
And if you are looking to invest in Ethereum’s big brother Bitcoin, consider investing in these Bitcoin stocks.
