Alternative Investments/Digital: Evolve Launches Canada’s First Multi-Crypto ETF
The Evolve Cryptocurrencies ETF commenced trading on the TSE effective Wednesday.
It’s Canada’s, and perhaps North America’s first multi-crypto ETF, but maybe not the world. “We thought we were the world’s first, but I got a message from a Brazilian issuer saying it’s actually not the first in the world,” said Raj Lala, Evolve’s President and CEO, to Wealth Professional. Nevertheless, the Evolve Cryptocurrencies ETF provides investors with exposure to both bitcoin and ether.
Bitcoin and ether in one ETF
Though Evolve wanted to include more cryptos in the ETF, as a sort of “a turnkey solution” for investors to participate in the cryptocurrency market, the Ontario Securities Commission only approved the ETF for bitcoin and ether.
But Lala’s not complaining.
“Even though these two cryptocurrencies are somewhat correlated to each other, they’ve had different return profiles,” he told WP. “So, by putting them into one ETF and accessing both at the same moment, you’re taking out some of the guesswork. That’s the whole purpose of having a more diversified fund: to dampen some of that volatility and hopefully capitalize on the cryptocurrency that’s significantly outperforming the other.”
The ETF will invest initially in underlying funds the Bitcoin ETF (EBIT) and the Ether ETF (ETHR) in the ratio of their market caps – about 67% bitcoin and 33% ethereum.
The charges applicable on the underlying ETFs are a 0.75% management fee, though no management fee applies on the multi-crypto ETF.
Image Credit: Pixabay (modified)
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