Purpose Investments announced recently it would file three new cryptocurrency-focused exchange-traded funds (ETFs) within Canada. Purpose stock continues to ride high on the recent approval by the United States Securities and Exchanges Commission (SEC) for crypto ETFs. Shares of Purpose Bitcoin ETF (TSX: BTCC.B) and Purpose Ether ETF (TSX: ETHH) are up 61% and 70%, respectively, in the last six months.
What happened
Purpose stock announced on October 20 that it would list three new funds in the near future. Those funds are the Purpose Crypto Opportunities ETF, Purpose Bitcoin Yield ETF, and Purpose Ether Yield ETF. This comes from the highly successful crypto ETFs focused on investing 100% of funds in either Bitcoin or Ether.
That’s what makes these new cryptos ETFs different for Purpose stock. The Crypto Opportunities ETF will invest in several digital assets, allowing for more diverse exposure in the cryptocurrency world. It will mainly focus on investing in publicly listed securities that will provide exposure to digital assets.
Meanwhile, Purpose stock and its Bitcoin Yield and Ether Yield ETFs will focus on providing investors with a monthly yield. This along with long-term capital appreciation. The objective will be achieved by investing mainly in direct and indirect exposure to Bitcoin and Ether. As well as a derivative strategy on portfolio securities.
“We see a lot of potential value in an active management approach to cryptocurrency investments, and we’re excited to take the first step globally to provide access to investors through public ETF vehicles,” says Vlad Tasevski, Chief Operating Officer and Head of Product at Purpose Investments. “We have been focused on democratizing access to cryptocurrency investing so that everyone can benefit from the potential of this emerging asset class.”
So what
This marks yet another of the new Canadian crypto ETFs coming on the market. After the fall in the summer, cryptocurrency has rebounded strongly. This comes from the SEC decision, absolutely. However, it also comes with several companies announcing the acceptance of the digital currency.
Purpose stock is trying to gain access to these wins by having these crypto ETFs under its roster. The company is now one of the largest digital asset managers in the world. In 2021, it surpassed $17 billion in assets under management.
Purpose stock and its management believe that by creating these crypto ETFs, they’re providing investors with a less expensive and less volatile way to invest in crypto.
“The cryptocurrency markets are known for their volatility. 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,” said Greg Taylor, Chief Investment Officer of Purpose.
Now what
It’s unclear when these new crypto ETFs will be online. However, after the filing, it’s hopefully going to be full steam ahead. In fact, we could see them before the new year. Meanwhile, you can certainly still take advantage of Purpose stock by investing in its Bitcoin and Ether ETFs.
Cryptocurrency is here to stay, volatility or not. And as long as Bitcoin and Ether remain a part of that future, Purpose stock should too. With more crypto ETFs coming out all the time, this could be a strong long-term hold for any investor.
