The new offerings that will be providing a monthly yield to investors, is courtesy of Purpose Investments, a Toronto based money manager.
Purpose Investments, is famous for launching the world’s first Bitcoin ETF earlier in the year. Recently, it unveiled three new cryptocurrency ETFs- Purpose Bitcoin Yield ETF, Purpose Ether Yield ETF, and also Purpose Crypto Opportunities ETF. The ETFs will begin trading today on the Toronto Stock Exchange (TSX), Under BTCY.B (Purpose Bitcoin Yield ETF) and ETHY.B (Purpose Ether Yield ETF).
The difference between these ETFs and the ones that began trading earlier in the year, is that these will pay investors a monthly yield through a covered call strategy, that is derivative-based and a first of its kind in the crypto space.
“We’re very excited to once again be a global leader in delivering high-quality new crypto solutions. To investors by launching three new actively managed and option strategy yield cryptocurrency ETFs,” said Som Seif, Founder and CEO at Purpose Investments.
“With these ETFs, we aim to expand the ways investors can access crypto markets. And generate the unique returns available in this emerging asset class. These products will complement our existing Bitcoin and Ether ETFs and provide a different form of return-and-risk profiles for investors.”
While Purpose Investment cannot guarantee the payout amount due to volatility. It expects an annual yield of between eight and ten percent for bitcoin and Ethereum ETFs. Both are classified as income in non-registered accounts. The management fee for both is 1.10 percent.
ETFs: Less Volatile Way to Play Crypto
This new strategy will expose investors to the ups and downs of the price of the underlying digital asset, just like outright cryptocurrency ETFs. However, since there is a monthly payout, there is a tradeoff- the upward capital gains would be limited in comparison.
It also means that losses on capital will be less significant and there will be less volatility. Chief operating officer and head of product at Purpose Investments, Vlad Tasevski says that; investors will consider these ETFs if they want exposure to the asset class without the swings associated with crypto markets.
The third fund, the Purpose Crypto Opportunities ETF also began trading today. Canadian-dollar-denominated ETF non-currency hedged units, and U.S.-dollar-denominated ETF non-currency hedged units start trading today under the tickers; CRYP, CRYP.B, and CRYP.U.
Purpose also says it uses an actively managed approach targeting long-term capital appreciation primarily through digital assets and securities that directly and indirectly expose digital assets. The management fee is 1.25 percent.
About Purpose Investments Inc.
Purpose Investments Inc. is an asset management firm, managing more than $14 billion in assets. The company with an unrelenting focus on client-centric innovation, also offers a wide range of managed and quantitative investment products.
The company is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company. For more information, please visit their website Purpose Investment.