Toronto-based Purpose Investments Inc. has filed a preliminary prospectus for three actively managed cryptocurrency ETFs, the firm said in a release on Wednesday.
The funds proposed for launch are the Purpose Crypto Opportunities ETF, Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF — the first-ever actively managed cryptocurrency ETFs, the firm said.
Purpose Crypto Opportunities ETF will invest primarily in securities that provide exposure to digital assets, aiming to provide long-term capital appreciation to investors, the release said. The fund will invest in publicly listed securities, including investment funds, and derivatives that provide exposure to digital assets.
Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF will obtain direct and indirect exposure to, respectively, Bitcoin and Ether, and will use derivatives-based strategies in respect of portfolio securities, the release said. The funds will aim to provide investors with monthly distributions and long-term capital appreciation.
“The cryptocurrency markets are known for their volatility,” said Greg Taylor, chief investment officer with Purpose, in the release. “We filed to launch these actively managed cryptocurrency ETFs to help investors benefit from active management by seasoned investment professionals who will be well-positioned to generate income, and manage risk and the volatility for investors.”
For the funds filed on Wednesday, Purpose will act as manager, as well as portfolio manager for the Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF. Neuberger Berman Breton Hill ULC will act as the investment subadvisor for the Purpose Crypto Opportunities ETF.
Also on Wednesday, Purpose said it will launch the Purpose DeFi Opportunities Fund as a privately offered fund that provides exposure to opportunities in decentralized finance.