Thematic investing firm to launch Canada's second bitcoin-focused ETF
Evolve ETFs, a Canadian thematic investment firm that’s also one of the country’s fastest-growing ETF providers, has officially become one of the leaders in the race toward a bitcoin ETF.
Weeks after it submitted a preliminary prospectus with regulators, Evolve has filed a final prospectus to launch its own bitcoin ETF.
The Bitcoin ETF, which is designed to provide investors with exposure to the cryptocurrency, on the TSX. It will be made available to Canadian investors through both unhedged ETF units (EBIT) and US dollar unhedged units (EBIT.U).
"The Bitcoin ETF is exciting news for investors," said Evolve President and CEO Raj Lala. “"Investors will be able to trade bitcoin on a regulated stock exchange. It will be as simple as buying shares through their bank or brokerage.”
Rather than seeking bitcoin exposure through derivatives and futures contracts, EBIT will be backed directly by physically settled bitcoin holdings. It will provide investors with exposure to the daily price movements of bitcoin’s U.S. dollar price based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark price index.
“EBIT will directly own bitcoin on the Bitcoin blockchain in a cold wallet,” said Evolve Chief Investment Officer and COO Elliot Johnson. “Investors will have confidence in the secure investment process for the Bitcoin ETF.”
According to Johnson, Evolve is working with best-in-class cryptocurrency experts including Gemini Trust Company, CF Benchmarks, Cidel Trust Company, and CIBC Mellon Global Services.
Evolve’s announcement came shortly after Purpose Investments obtained regulatory approval to launch Purpose Bitcoin ETF, the world’s very first direct-custody bitcoin ETF.