Toronto-based Purpose Investments Inc. has announced the launch of three new covered call and actively managed cryptocurrency ETFs.
The Purpose Bitcoin Yield ETF, Purpose Ether Yield ETF and Purpose Crypto Opportunities ETF all began trading on the TSX on Tuesday, and aim to help investors turn the volatility of cryptocurrency into opportunities, a release said.
The Bitcoin yield fund and Ether yield fund will provide long-term capital appreciation through obtaining direct and/or indirect exposure to each of the cryptocurrencies, respectively, and by implementing a derivatives-based strategy.
The Purpose Crypto Opportunities ETF will provide long-term capital appreciation by investing primarily in digital assets and securities that provide direct and/or indirect exposure to digital assets.
The three funds are classified as alternative mutual funds, according to their ETF Facts, and all have so far been assigned high risk ratings. The annual management fee for both of the Bitcoin and Ether yield funds is 1.10% of the class’ value, while the fee for the crypto opportunities fund is 1.25%.
Purpose will act as manager of the cryptocurrency ETFs as well as portfolio manager for Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF. The Purpose Crypto Opportunities ETF will be sub-advised by New York-based Neuberger Berman Canada ULC.
“With these ETFs, we aim to expand the ways investors can access the crypto markets and generate the unique returns available in this emerging asset class. These products will complement our existing Bitcoin and Ether ETFs and provide a different form of return-and-risk profiles for investors,” said Som Seif, founder and CEO at Purpose Investments, in the release.
Purpose launched the Purpose Bitcoin ETF and Purpose Ether ETF earlier this year.