Ethereum and bitcoin ETFs launched in Canada with monthly payouts
Canada is still the leader in cryptocurrency ETFs. New options that track Bitcoin or Ethereum and pay monthly are expected to follow. Purpose Investments launched in February the first North American ETF to track the price of Bitcoin. Now, more ETFs are being introduced.
Launch of ETFs for Bitcoin and Ethereum in Canada
Today, the non-currency-hedged units of ETFs were priced in Canadian dollars and began trading on Toronto Stock Exchange under the tickers ETHY.B (Ether Bitcoin Yueld ETF) or BTCY.B.
In that they offer investors a monthly return, the new Bitcoin and Ethereum ETFs are different from earlier trading platforms. Purpose Investments claims its first-ever derivatives-based covered calling strategy in crypto is Purpose Investments.
Purpose Investment notes the volatility of ETFs means it cannot guarantee the amount of the dividend. However, it expects to earn between 8percent-10percent annually for both ETFs. This income will be classified as income in non-registered accounts. Each ETF has a 1.10 percent management fee.
Like pure-play cryptocurrency ETFs this strategy will expose investors to fluctuations in the price of the underlying digital assets. The monthly payouts are a compromise, however, as capital gains potential is limited by the contrast.
This will also mean that capital losses and volatility will be reduced. These ETFs are available to investors, Vlad Tasevski, chief operational officer and head product at Purpose Investments says. Investors can explore them if they wish to have exposure to this asset class without experiencing the volatility of crypto markets.
“They should also consider whether they want to earn a return while keeping them,” he said. Yahoo Finance Canada’s He said that covered call options allow investors to generate additional income while holding an asset they believe has long term potential.
“Covered call strategies for cryptocurrencies offer investors unique exposure to a unique asset type because of the link between volatility in underlying assets and premiums. This allows them to earn high yields without having to sacrifice significant price participation.
The Purpose Crypto Opportunities ETF also started trading today. Today’s trading began under the tickers CRYP.B., CRYP.B., and CRYP.U. These funds are non-currency-hedged ETF non–currency-hedged units denominated Canadian dollars, and non-currency-hedged ETF non–currency-hed units denominated US dollars.
Purpose claims are to use an actively managed strategy to achieve long-term capital appreciation, primarily via digital assets and securities that have direct or indirect exposure to digital assets. 1.25 percent management charge.
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