Evolve Funds Group has filed a preliminary prospectus with the Canadian securities regulators for Canada’s first cryptocurrency ETF, Evolve Bitcoin ETF (BITS).
The ETF is designed to provide Canadian investors with indirect exposure to the world’s first decentralized currency.
“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,” says Raj Lala, President & CEO of Evolve ETFs. “An ETF ed to the price of Bitcoin could be a simpler way for investors to participate in its growth.”
BITS seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of exposure to bitcoin obtained through investments in CFE Bitcoin (USD) Futures. The Evolve ETF invests directly or indirectly in exchange- traded futures contracts and other financial instruments and derivatives that provide similar return characteristics.
“Bitcoin effectively marries currency with technology,” says Lala. “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 decentralised 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.”
BITS will offer investors with both hedged and unhedged units. Evolve Funds, a registered investment fund manager and portfolio manager, will act as promoter, manager, trustee and portfolio manager of BITS and will be responsible for the administration of BITS.