Toronto-based Evolve Funds Group Inc has filed a preliminary prospectus for Evolve Bitcoin ETF, the first ETF in Canada focused on a cryptocurrency.
The new ETF was developed to provide Canadian investors indirect exposure to the world’s first decentralized currency.
“Bitcoin effectively marries currency with technology,” says Raj Lala, president and CEO of Evolve ETFs, in a statement. “Bitcoin is an online currency that can be sent and received by anyone in the world, relying on computers to control the transfer and creation of money without human intervention. It’s the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. As more and more of the world goes digital, usage of cryptocurrencies could increase significantly in the coming years.”
The ETF aims to duplicate, before fees and expenses, the performance of exposure to bitcoin obtained through investments in CFE Bitcoin (USD) Futures. The ETF invests directly or indirectly in exchange-traded futures contracts and other financial instruments and derivatives that give similar returns.
“Accessing Bitcoin is not easy for many — it is a very complicated and expensive process as investors are currently unable to trade them in a regular brokerage account,” adds Lala. “An ETF tied to the price of Bitcoin could be a simpler way for investors to participate in its growth.”
Evolve Bitcoin ETF will provide investors with both hedged and unhedged units.
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