Canada Clears the Country's Second Cryptocurrency ETF

As cryptocurrency investing continues to reach epic proportions, Canada is already rolling out its second crypto ETF. The Ontario Securities Commission (OSC) approved the second Bitcoin ETF from Evolve Funds, just days after the debut of the Purpose Bitcoin ETF.

Per a Business Insider article, the fund “seeks to provide investors with exposure to the daily price movements of the US dollar price of bitcoin. Crypto enthusiasts see an exchange-traded fund as a way for more retail investors to gain price exposure to bitcoin. An ETF trades on the stock market, and investors won’t need to set up a crypto wallet to invest.”

The Evolve ETF will make its debut on the Toronto Stock Exchange under the ‘EBIT’ and ‘EBIT.U.’ ticker symbols. The article also noted that this latest move by Canada could produce a domino effect that ultimately leads to a U.S.-based cryptocurrency ETF.

“Now that the OSC has said that if a product is well constructed enough the crypto market is sufficiently mature for these types of financial products, the industry’s attention inevitably turns south of the border to the US,” said Sui Chung, CEO of CF Benchmarks. “Will the SEC finally decide that the time is right for a Bitcoin ETF?”

Fintech Options in the United States

Meanwhile, back in the U.S. where a Bitcoin ETF still hasn’t come to fruition, the rise of cryptocurrencies warrants a look at financial technology ETFs that can build off the momentum. Funds to consider in the growing fintech space include the Global X FinTech ETF (FINX) and the ARK Fintech Innovation ETF (ARKF).

ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.

FINX seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Fintech Thematic Index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software, and alternative currencies, as defined by the index provider.

Another fund to take advantage of is the Goldman Sachs Motif Finance Reimagined ETF (GFIN). GFIN seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Motif Finance Reimagined Index.

The fund seeks to achieve its investment objective by investing at least 80% of its assets in securities included in its underlying index. The index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going structural changes in the support and delivery of financial services.

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