Canada’s Evolve Funds Group is making all necessary moves when it comes to launching crypto ETFs in the market. On Wednesday, September 29, Evolve announced the country’s first multi-crypto ETF.
The idea is to diversify exposure to other cryptocurrencies instead of having a particular crypto-focused ETF. Dubbed as the Evolve Cryptocurrencies ETF, this is a market-cap weighed fund both Bitcoin (BTC) and Ethereum (ETH).
The fund has 68% of its holdings in Bitcoin and the rest 32% holdings in Ethereum. Interestingly, this multi-crypto ETF will seek exposure to Bitcoin and Ether by holdings shares of the Evolve Bitcoin ETF (EBIT) and the Evolve Ether ETF (ETHR). This multi-crypto fund will have no management fees but the underlying ETFs do attract a 0.75% management fee.
Shares of the Evolve Cryptocurrencies ETF have started trading on the Toronto Stock Exchange (TSX) under the ticker symbol ETC. Speaking to Wealth Professional, Raj Lala, Evolve’s President and CEO, praised the Ontario Securities Commission for being ahead in terms of approving crypto derivative products. He further added:
“A lot of investors want to invest in cryptocurrencies. They’re not exactly sure which one to pick, or they may also want to get exposure to the cryptocurrencies that are growing. They’re looking for more of a turnkey solution to participate in the cryptocurrency market.”
The U.S. Still Figuring Out A bitcoin ETF Approval
Canada has been leading the developments in North America when it comes to approving crypto ETF products in the market. On the other hand, the U.S. SEC is certainly playing a spoilsport all this while.
Bloomberg Intelligence senior commodity strategist Mike McGlone is, however, bullish about the Bitcoin ETF approval. Interestingly, McGlone believes that the first Bitcoin ETF in the U.S. can come as soon as next month. In an interview with Stansberry Research last week, McGlone said:
“There’s still a high probability that the US is just going to follow Canada, maybe with a futures-based bitcoin ETF. There are now over [bitcoin ETF] 30 applications, and the fact that money is migrating from the US – from Cathie Wood and Ark – towards Canada, the pressure is quite strong and high for the US regulators to say: ‘All right, we’re kind of missing out here and we need to do that.’”
There are currently more than 30 Bitcoin ETF applications pending with the U.S. SEC.