Purpose Investments, an asset management firm behind the world’s first Bitcoin exchange-traded fund (ETF), has announced that it is launching mutual fund units for its crypto ETFs. The mutual fund units will be available for the firm’s Purpose Bitcoin ETF and Purpose Ether ETF, backed by Bitcoin and Ethereum, respectively.
Purpose Investments is one of the largest cryptocurrency asset management firms in Canada. It has more than $12 billion in assets under management.
Purpose Investments Creating Mutual Fund Units
A press release on the issue by the firm stated that the launch would initially start with six mutual fund units. The six funds will be available for both Bitcoin and Ethereum ETFs. Each ETF will carry both Class A and Class F units. It will also involve other non-hedged variants and non-hedged USD variants.
The announcement further dictates that each new product will be acquired at the net asset value per unit of the underlying asset, which is Bitcoin and Ethereum in this case. The purchase will be completed at zero premiums and discounts because the units could be linked to an already listed security.
Commenting on the launch of this fund, Som Self, the CEO and founder of Purpose Investment stated that, “offering a mutual fund platform that allows investors to get exposure to Bitcoin and Ether is a natural next step for us as we continue to establish our leadership and commitment to cryptocurrency as an emerging asset class.”
Self also noted that the launch of these mutual fund units was an expected development, and it could offer an easy and secure way for investors in Canada to gain exposure to Bitcoin and Ethereum.
Crypto-friendly Ecosystem in Canada
In February, Purpose Investments launched the world’s first Bitcoin ETF. This fund is the largest one in Canada. This launch paved the way for similar funds to be approved by the relevant regulatory bodies.
In September, Canada approved the first Bitcoin and Ethereum multi-crypto exchange trade fund. This new fund will allow investors to have a combined exposure to the two leading cryptocurrencies.
Crypto ETFs are recommended to new investors who are not experienced in crypto because they allow them to venture into this space while avoiding the self-custody risks.
Canadian regulators have been more lenient towards the cryptocurrency sector compared to other global regulators. A few weeks back, the country’s regulators released advertising guidelines that crypto exchanges should use in the country. Those who follow these guidelines will avoid lawsuits related to their marketing strategies.
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