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Canada-based asset manager Purpose Investments has applied to the Canadian securities regulators to launch the world’s first actively managed cryptocurrency ETFs.
Purpose Files Paperwork For 3 New ETFs
The asset management company announced yesterday that it had already filed the preliminary simplified prospectus and the annual information form with the authorities. The three crypto ETFs, which could be the world’s first actively managed cryptocurrency ETFs, are -
- Purpose Crypto Opportunities ETF
- Purpose Bitcoin Yield ETF
- Purpose Ether Yield ETF
Purpose had previously launched the world’s first Bitcoin and Ether ETFs earlier this year - Purpose Bitcoin ETF and Purpose Ether ETF.
For Vlad Tasevski, COO of Purpose Investments, there is a lot of potential value in the active management approach to cryptocurrency investments.
“We have been focused on democratizing access to cryptocurrency investing so that everyone can benefit from the potential of this emerging asset class. We will continue to take on a leadership role and ensure we’re providing investors with the highest quality and most practical solutions they need.”
Furthermore, the company is also developing plans to launch a privately offered fund providing exposure to decentralized finance.
Bitcoin And Ether Yield ETFs
The Purpose Bitcoin Yield ETF is planning monthly distributions along with long-term capital appreciation. The primary focus of this fund will be to implement a derivative-based strategy for the portfolio securities to gain direct and indirect exposure to BTC.
Similarly, Unitholders investing in the Purpose Ether Yield ETF will receive monthly distributions along with long-term capital appreciation. Similar to the previous BTC-based yield ETF, the Purpose Ether Yield ETF will be mainly following a derivative-based strategy to gain direct and indirect exposure to Ether. Purpose Investments itself will manage both the yield funds.
Purpose Crypto Opportunities ETF
This particular ETF is targeting returns through long-term capital appreciation by investing predominantly in publicly listed securities (including investment funds) and derivative instruments that bring exposure to digital assets (including BTC and/or ETH). Private investment manager Neuberger Berman Breton Hill ULC will serve as an independent subadvisor for the Crypto Opportunities fund.
Greg Taylor, CIO of Purpose Investments, spoke on the decision to launch these ETFs,
“The cryptocurrency markets are known for their volatility. We filed to launch these actively managed cryptocurrency ETFs to help investors benefit from active management by seasoned investment professionals who will be well-positioned to generate income, and manage risk and the volatility for investors.”
