Evolve Funds Group has filed a preliminary prospectus with the Ontario Securities Commission (OSC) for a new cryptocurrencies exchange-traded fund (ETF). Through this multi-crypto ETF, the Toronto-based fund will offer investors indirect exposure to certain cryptocurrencies selected by the investment manager and weighted on a market cap basis that will be rebalanced monthly, according to the press release. It will offer both US dollar and Canadian dollar-denominated unhedged units and won't be using leverage or pay regular cash distributions. The Evolve Cryptocurrencies ETF will predominantly hold Bitcoin and Ether by initially investing in two of its crypto funds, Bitcoin ETF and Ether ETF (ETHR), launched their year that trade on the Toronto Stock Exchange (TSX). Its Bitcoin ETF (EBIT) has nearly $100 million worth of assets, while Ether ETF (ETHR) has more than $71 million. These ETFs allow investors to hold cryptocurrencies in their brokerage account, including their Registered Retirement Savings Plan (RSP) and Tax-Free Savings Account (TFSA). The fund may add other cryptocurrency ETFs if and when they get available, making the new fund “a potential turnkey solution for cryptocurrency investing,” said Raj Lala, president, and CEO of Evolve ETFs, in a statement.
“With the Evolve Cryptocurrencies ETF, investors will be able to take a broader approach by allocating to cryptocurrencies based on their market cap weightings."
Evolve will be charging the same management fees as to the underlying funds, which is 0.75% of net asset values plus sales taxes.