Purpose Investments Inc. is creating a slew of new exchange-traded funds catering to investors who may be looking to participate in the cryptocurrency market while limiting their exposure to the volatility of digital coins.
Purpose said it filed a preliminary prospectus Tuesday with Canadian securities regulators to offer investors three new actively managed cryptocurrency ETFs that are believed to be among the world’s first.
“We have been focused on democratizing access to cryptocurrency investing so that everyone can benefit from the potential of this emerging asset class. We will continue to take on a leadership role and ensure we’re providing investors with the highest quality and most practical solutions they need,” said Vlad Tasevski, chief operating officer and head of product at Purpose Investments, in a statement.
The announcement comes ahead of the launch of the first bitcoin futures ETF to trade in the U.S., a move that is likely to generate increased investor interest in the fast-moving cryptocurrency space.
Purpose, which manages more than $12 billion in assets, previously launched other high-profile ETFs in the crypto space including one dedicated to bitcoin and ether.
In this latest launch, the Toronto-based firm will create the Purpose Crypto Opportunities ETF, which will actively manage and invest in a broad range of publicly-traded cryptocurrency products such as ETFs, derivatives, and public market equities. For that ETF, Purpose has tasked Neuberger Berman Breton Hill ULC as the fund’s investment subadvisor.
The two other ETFs will focus on offering investors exposure to bitcoin and ether while also implementing an active option writing strategy aimed at better managing their risk to those specific securities. Purpose will manage both of these funds, dubbed the Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF, respectively.