Evolve Funds Group Inc. has launched Canada’s first multi-crypto ETF on Toronto Stock Exchange (TSX) starting with Bitcoin and Ethereum.
Evolve Funds announced the news in a press release on Wednesday, September 29. According to the announcement, the ETF product called Evolve Cryptocurrencies ETF has closed its initial offering of units and trading has begun on the Toronto Stock Exchange (TSX) under the ticker symbols “ETC (CAD Unhedged Units) and ETC.U (USD Unhedged Units).”
The announcement reads:
“ETC seeks to provide investors with exposure to the daily price movements of certain digital assets selected by the Manager from time to time, on a market capitalization basis, while experiencing minimal tracking error by investing in other publicly offered investment funds managed by Evolve. The portfolio will be rebalanced monthly.”
The ETC will initially allow investors to invest in Bitcoin ETF (EBIT) and Ether ETF (ETHR) based on their respective market capitalization weightings, which is around 67 percent Bitcoin and 33 percent Ethereum. According to the Evolve Funds, this multi-cryptocurrency ETF will not use leverage and does not intend to pay regular cash distributions.
EBIT and ETHR’s holdings will be priced based on the CME CF Bitcoin and Ether Reference Rates, the once-a-day benchmark index prices dominated US Dollars. Both these indices are provided by CF Benchmarks Ltd.
“No management fees will be payable on ETC, however, the underlying investment funds held by the Fund will pay management fees. The management fees on EBIT and ETHR are 0.75% of net asset values, plus applicable sales taxes,” reads the announcement.
Gemini is providing the backend infrastructure for this multi-crypto ETF through its Gemini Fund Solutions, a “unified platform providing fund managers with custody, clearing, trade execution, and other capital markets services specifically designed for crypto ETFs, closed-end funds (CEFs), and other fund vehicles.”
Exciting news coming from our friends up North! @EvolveETFs has launched Canada’s first multi-crytpo ETF – listed under ticker $ETC on @tsx_tsxv. Congrats🇨🇦#GeminiFundSolutions is proud to be providing the infrastructure to make this work behind the scenes!
— Gemini (@Gemini) September 29, 2021
Evolve Funds is a Toronto-based asset management firm that provides Canadian investors with access to innovative investment solutions. The company currently has approximately $2 billion in assets under management (AUM). Evolve is one of Canada’s fastest-growing ETF providers since launching its first ETF in September 2017.
Canadian financial institutions are embracing crypto assets at a rapid pace as more and more are launching crypto-focused investment products. Other the other hand, superpower neighbor has yet to approve a crypto ETF as the Securities and Exchange Commission (SEC) is still thinking about what to do.