Two new bitcoin ETFs for Canadian investors

Article Excerpt

This month we look at two new bitcoin ETFs—one from Purpose Investment and the other from Evolve Funds. Due to U.S. regulatory restrictions, these Canadian-listed ETFs are among the first globally that directly hold bitcoin. PURPOSE BITCOIN ETF $11.80 (Toronto symbol BTCC.B or BTCC.U) invests in the digital currency bitcoin. The BTCC.B version is priced in Canadian dollars (but not hedged) and the second version in U.S. dollars. The fund launched on February 18, 2021, and charges a management fee of 1.00%. Its asset base has rapidly expanded to $30.7 million. Safekeeping of the ETF’s bitcoin assets is obviously a key concern for investors. Accordingly, the fund has hired Gemini Trust as its sub-custodian and CIBC Mellon as its fund administrator. That is aimed at providing investors with confidence regarding the purchase, settlement, and custody of bitcoin. EVOLVE BITCOIN ETF $27.43 (Toronto symbol EBIT or EBIT.U) invests in bitcoin. The EBIT version is priced in Canadian dollars (but not hedged). A second version is in U.S. dollars. The fund launched…