Purpose Investments Files Crypto ETF Prospectus with Canadian Securities Regulator

2 mins
21 October 2021, 05:07 GMT+0000
Updated by Kyle Baird
21 October 2021, 05:07 GMT+0000
In Brief
  • Prospectus Investments Inc. filed a preliminary prospectus and annual information form with the Canadian securities regulator to launch three cryptocurrency ETFs.
  • All three ETFs will use derivatives instruments as the main component of their strategy.
  • Seasoned investors will actively manage risk associated with crypto volatility for clients.
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Purpose Investments Inc. has announced a filing with the Canadian securities regulator to launch three actively managed crypto ETF products.

In seeking to democratize access to cryptocurrency, and provide portfolio exposure to cryptocurrency, Purpose Investments Inc., has filed a prospectus and annual information form in connection with the launch of the Purpose Crypto Opportunities ETF, the Purpose Bitcoin Yield ETF, and the Purpose Ether Yield ETF.

Purpose is a very client-centric company, with a range of managed and quantitative investment products. The Purpose Crypto Opportunities ETF seeks to provide clients with long-term capital appreciation by investing in securities that provide exposure to crypto-assets. To achieve this, the investment strategy will include investing in publicly listed securities and derivative instruments that provide exposure to digital assets.

Crypto yield ETFs

Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF will provide investors with monthly distributions and long-term capital appreciation by obtaining direct and possibly indirect exposure to bitcoin and Ether respectively while using a derivative-based strategy with respect to portfolio securities.

Both ETFs are available in three ETF series, which are Canadian dollar-denominated ETF currency-hedged units, Canadian dollar-denominated ETF non-currency hedged units, and mutual fund units.

Purpose Investments’ trailblazing achievements

The Purpose Bitcoin ETF was launched in February 2021, after winning approval from the Canadian securities regulator. Two days after its launch, the ETF grew its assets under management to over $400M.

In April, Purpose launched another world-first, a direct custody Ether ETF. At the time, U.S. regulators were not willing to budge on the position regarding ETFs, only recently approving a bitcoin futures ETF, which has directly preceded bitcoin reaching record-breaking highs on Oct 20.

Canadian company Purpose Investments was founded in 2012 and surpassed $1B in assets under management. In March 2021, the total value of assets managed by Purpose Bitcoin ETF crossed $1B and launched the world’s first physically settled Bitcoin ETF.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.