Evolve's Bitcoin ETF begins trading on the TSX

EBIT takes on the Purpose Bitcoin ETF as Canadian investors quickly get a second option to invest in cryptocurrency

Evolve's Bitcoin ETF begins trading on the TSX

Evolve Funds Group Inc’s new Bitcoin ETF has closed its initial offering of units and has today begun trading on the Toronto Stock Exchange under the ticker EBIT.

EBIT will provide investors with exposure to the daily price movements of the U.S. dollar price of bitcoin by utilizing the benefits of the creation and redemption processes offered by the exchange traded fund structure.

Investors in EBIT will directly own bitcoin on the Bitcoin blockchain in a cold wallet. Gemini Trust Company, LLC will act as the Sub-Custodian in respect of EBIT’s holdings of bitcoin.

Ray Lala, president and CEO at Evolve, said: “The recent institutional adoption has helped further legitimize the progress of bitcoin. Being able to offer an ETF which holds physical bitcoin is a real game changer in Canada. Now investors may participate in bitcoin via their brokerage accounts within their RRSP and TFSA. Bitcoin has proven to be a store of value that is uncorrelated to other major asset classes – and has now emerged as an asset class itself.”

David Abner, Head of Business Development at Gemini Trust Company, LLC, added: “We are proud to be working with Raj and Evolve ETFs on the launch of one of the first true Bitcoin ETFs in Canada.

“Crypto presents unique challenges for fund issuers and utilizing Gemini for fund services like custody, execution and clearing provides real comfort to investors. We have a unique understanding of both the ETF and Crypto ecosystems and bring this knowledge to every product we support.”

EBIT will not seek exposure through derivatives or futures contracts. The daily NAV will be based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for bitcoin denominated in U.S. dollars.

“We’re proud to partner with the world’s first regulated crypto benchmark administrator, CF Benchmarks, that offers a fully transparent methodology and relies on real-time data from five Bitcoin exchanges including Gemini, itBit, Coinbase, Kraken and Bitstamp,” says Elliot Johnson, Chief Investment Officer and Chief Operating Officer at Evolve ETFs. “The world’s leading crypto currency continues to gain momentum and legitimacy as more and more institutions embrace its value and potential every day.” 

EBIT is available in Canadian dollar-denominated unhedged units (TSX Ticker: EBIT), and U.S. dollar-denominated unhedged units (TSX Ticker: EBIT.U).

Evolve’s launch comes a day after the launch of the Purpose Bitcoin ETF, with investors exchanging $165 million worth of shares.