New ETFs for Canadian investors

Article Excerpt

This month we look at the first crypto ETF that steers clear of direct investment in cryptocurrencies, and a Canadian ETF focusing on emerging market equities. Eight months after Canada saw the launch of the first cryptocurrency ETFs, ProShares managed to get approval from U.S. regulators to launch the PROSHARES BITCOIN STRATEGY ETF $41.44 (New York symbol BITO). The ETF does not invest in actual cryptocurrencies but holds futures contracts linked to the price of bitcoin. The crypto ETFs previously launched in Canada hold bitcoin and ethereum directly, but U.S. regulators have not approved a similar arrangement. The U.S. regulators’ concern seems to be the possibility of price manipulation on the unregulated markets where cryptocurrencies trade. In contrast, the bitcoin futures trade on a publicly regulated market. The fund launched on October 19, 2021 and charges a very high management fee of 0.95%. We advise staying away from cryptocurrencies—including ETFs investing in them. We think the odds of profiting in cryptocurrenices are now more heavily weighted against you…

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