The Evolve Levered Ether ETF (ticker: LETH / LETH.U) offers investors leveraged exposure to the daily performance of Ether (ETH), one of the most prominent cryptocurrencies in the digital asset ecosystem. Designed for sophisticated investors, this exchange-traded fund (ETF) provides a regulated and accessible way to gain amplified returns—up to 1.25 times—based on the U.S. dollar price movements of Ethereum.
Listed on the Toronto Stock Exchange (TSX), the ETF launched on March 17, 2025, and is managed by Evolve Funds Group Inc., a leading Canadian ETF issuer. With a management fee of 0.00% (plus applicable taxes), LETH appeals to traders seeking cost-efficient leveraged exposure without the complexities of direct crypto ownership.
How the Evolve Levered Ether ETF Works
The Evolve Levered Ether ETF is an index-based product that tracks the CME CF Ether-Dollar Reference Rate (ETHUSD_RR), a benchmark published by CF Benchmarks Ltd. This index reflects the spot price of Ether in U.S. dollars and is widely used across financial institutions for derivatives pricing and investment products.
Rather than holding physical Ether directly, the ETF gains exposure through its investment in the Evolve Ether ETF (ETHR), an underlying fund that holds Ether assets. The leveraged return is achieved synthetically using financial derivatives such as swaps and futures contracts, allowing the fund to deliver 1.25x daily leverage on ETH’s U.S. dollar price movement.
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Because leverage resets daily, returns are not intended to compound over multiple days. As such, the ETF is best suited for short-term tactical positioning rather than long-term buy-and-hold investing.
Key Fund Details
- Ticker Symbols: LETH (CAD unhedged), LETH.U (USD unhedged)
- Inception Date: March 17, 2025
- Listing Exchange: Toronto Stock Exchange
- Management Fee: 0.00% (plus sales taxes)
- Underlying Fund: Evolve Ether ETF (ETHR)
- Index Provider: CF Benchmarks Ltd
- Leverage Target: 1.25x daily exposure to ETH/USD
- Shares per ETH: 1
- Currency Denomination: CAD (LETH), USD (LETH.U)
- CUSIP Codes: 30054E200 (LETH), 30054E101 (LETH.U)
As of June 30, 2025:
- Net Asset Value (NAV): $24.15 (LETH), $25.18 (LETH.U)
- Total Fund Assets: $3.536 million
- Ether Price (USD): $2,428.72 (as of July 1, 2025)
Note: The fund does not currently distribute dividends or income.
Who Should Consider This ETF?
This ETF is designed for experienced investors who:
- Seek amplified exposure to daily Ether price movements
- Prefer a secure, exchange-listed alternative to holding crypto directly
- Understand the risks associated with leverage and cryptocurrency volatility
- Are prepared to absorb partial or total loss of capital
- Accept the compounding effects and decay risks inherent in daily-reset leveraged products
Due to its structure and risk profile, the Evolve Levered Ether ETF is not appropriate for conservative investors or those with low risk tolerance.
Performance & Risk Considerations
As of June 30, 2025, the fund has not completed a full year of performance history, so annualized returns are not yet available. However, investors should understand that leveraged ETFs like LETH are engineered for intraday or short-term use.
Over longer periods, volatility decay can significantly erode returns—even if Ether’s price ends higher, the leveraged ETF may not reflect proportional gains due to daily rebalancing.
For example:
- If Ether rises 10% one day and falls 10% the next, the net change is -1% due to compounding.
- A 1.25x leveraged ETF would experience even greater deviation from simple linear returns.
Therefore, consistent monitoring—ideally daily—is essential for maintaining alignment with investment goals.
Index Provider: CF Benchmarks Ltd
CF Benchmarks Ltd powers the index that underpins the Evolve Levered Ether ETF. Known for its transparency and robust methodology, CF Benchmarks combines traditional financial indexing principles with crypto-specific innovations.
Key features of CF Benchmarks:
- Real-time data collection from major crypto exchanges
- Anti-manipulation controls and fair pricing mechanisms
- Publicly available index methodologies and governance records
- Independent oversight committee with published meeting minutes
Their CME CF Ether-Dollar Reference Rate is trusted by institutions like CME Group and WisdomTree, reinforcing the credibility of financial products built upon it.
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Frequently Asked Questions (FAQ)
Q: What is the difference between LETH and LETH.U?
A: LETH is denominated in Canadian dollars (CAD), while LETH.U is priced in U.S. dollars (USD). Both track the same underlying leveraged index but cater to different investor preferences regarding currency exposure.
Q: Does this ETF pay dividends or distributions?
A: No. The Evolve Levered Ether ETF does not make regular distributions. Any gains must come from capital appreciation.
Q: Can I hold this ETF long-term?
A: It's not recommended. Due to daily leverage reset and volatility decay, returns can diverge significantly from ETH’s long-term price trend. It's best used for short-term trading strategies.
Q: How is leverage achieved?
A: The fund uses derivative instruments such as total return swaps linked to the underlying Evolve Ether ETF (ETHR), which holds actual Ether. This allows synthetic 1.25x exposure without direct borrowing.
Q: Is my investment in LETH protected against losses?
A: No. Like all ETFs, especially those involving leverage and crypto assets, LETH carries substantial risk. Investors may lose some or all of their capital.
Q: Why is there no management fee?
A: While LETH charges 0.00%, the underlying ETHR fund incurs a 0.75% management fee plus taxes. These costs are indirectly passed on to LETH investors.
Geographic & Sector Allocation
As of June 27, 2025, the Evolve Levered Ether ETF derives its exposure entirely through financial derivatives tied to Ether. Therefore:
- Geographic Allocation: Not applicable — exposure is global via a digital asset benchmark
- Sector Allocation: Entirely focused on cryptocurrency / blockchain technology sector
This makes LETH a pure-play instrument for gaining leveraged access to Ethereum’s market performance.
Final Thoughts: Is LETH Right for You?
The Evolve Levered Ether ETF fills a niche for traders looking to amplify their views on Ethereum’s short-term direction within a regulated Canadian securities framework. With zero management fees and dual-currency share classes, it offers flexibility and efficiency.
However, its leveraged nature demands caution. Only investors with a solid grasp of crypto markets, risk management, and derivative mechanics should consider allocating capital.
Whether you're hedging positions or speculating on price swings, tools like LETH underscore the growing maturity of crypto-based financial products.
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