Canadian ETF investors given the tools to use crypto volatility to their advantage
Purpose Investments, which introduced the first-ever bitcoin ETF in February, has come out with three new world-leading crypto ETFs.
“We’re very excited to once again be a global leader in delivering high-quality new crypto solutions to investors by launching three new actively managed and option strategy yield cryptocurrency ETFs,” said Purpose founder and CEO Som Seif. “With these ETFs, we aim to expand the ways investors can access crypto markets and generate the unique returns available in this emerging asset class.”
The Purpose Bitcoin Yield ETF and the Purpose Ether Yield ETF are now trading on the TSX. With Canadian dollar-denominated units listed under the symbols BTCY.B and ETHY.B, respectively, they are the first covered call cryptocurrency ETFs in the world. Additional ETF classes of BTCY.B and ETHY.B will be available later in the week.
BTCY.B seeks to provide unitholders with monthly distributions and long-term capital appreciation primarily through obtaining bitcoin exposure, and by implementing a derivatives-based strategy in respect of portfolio securities. Similarly, ETHY.B is designed to provide monthly distributions and long-term capital appreciation primarily using exposure to Ether along with a derivatives-based strategy in respect of portfolio securities.
Meanwhile, the Purpose Crypto Opportunities ETF has been launched under the tickers CRYP, CRYP.B, and CRYP.U, representing ETF units, Canadian-dollar-denominated ETF non-currency hedged units, and U.S.-dollar-denominated ETF non-currency hedged units, respectively.
CRYP is the world’s first actively managed cryptocurrency ETF. Evolve ETFs, which competed with Purpose to launch the first-ever Ether ETF in April, introduced another multi-crypto ETF in September, though that one provides market-cap weighted exposure to its portfolio cryptocurrencies.
The Purpose Crypto Opportunities ETF has the sole aim of providing long-term capital appreciation primarily through investments in digital assets and securities that provide exposure to digital assets.
Purpose will be the manager of the Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF, while Neuberger Berman Canada ULC will act as the investment sub-advisor for the Purpose Crypto Opportunities ETF.
“Purpose is a strong partner of Neuberger Berman in Canada, and we are excited to be working together to launch the first actively managed crypto ETF in the world,” said Frank Maeba, managing director at Neuberger Berman.
Mutual fund units for all three ETFs are also now available.