TORONTO, Sept. 27, 2021 /CNW/ -Evolve Funds Group Inc. ("Evolve" or "the Manager") is pleased to announce that it has filed the final prospectus with Canadian securities regulators in plans to launch Canada's first multi-cryptocurrency ETF. The Evolve Cryptocurrencies ETF ("ETC" or "the Fund") is expected to begin trading on Wednesday, September 29, 2021 on the Toronto Stock Exchange ("TSX"), subject to TSX approval. ETC is designed to provide investors with one convenient way to obtain exposure to bitcoin and ether, on a market capitalization basis, through an ETF structure.
"Bitcoin has established itself as a store of value and is often referred to as digital gold," says Raj Lala, President and CEO, Evolve ETFs. "Ether is often referred to as digital oil and has become an essential building block for digital finance including NFTs and other DeFi applications. Together, bitcoin and ether make up about 65% of the total crypto market capitalization. Now investors can access both in one ETF solution."
ETC seeks to provide investors with exposure to the daily price movements of certain digital assets selected by the Manager from time to time, on a market capitalization basis, while experiencing minimal tracking error by investing in other publicly offered investment funds managed by Evolve. ETC intends to initially invest in Bitcoin ETF ("EBIT") and Ether ETF ("ETHR") based on their respective market capitalization weightings, based on the methodology employed by CF Benchmarks. The portfolio will be rebalanced monthly. ETC will not use leverage and does not intend to pay regular cash distributions.
The following chart sets out the TSX ticker symbols for ETC:
|
CAD Unhedged Units
|
USD Unhedged Units
|
|
ETC
|
ETC.U
|
With combined assets over $185 million, EBIT and ETHR provide investors with exposure to the daily price movements of the U.S. dollar price of Bitcoin and Ether, respectively, by utilizing the benefits of the creation and redemption processes offered by the exchange traded fund structure. EBIT's holdings are priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for bitcoin denominated in U.S. dollars, while ETHR's holdings are priced based on the CME CF Ether-Dollar Reference Rate, a once-a-day benchmark index price for ether denominated in U.S. dollars. Both indices are administered by benchmark administrator, CF Benchmarks.
"While ether and bitcoin can trend in a similar direction, their returns can vary substantially, which makes the case for investors owning a diversified strategy within the asset class," says Elliot Johnson, Chief Investment Officer and Chief Operating Officer, Evolve ETFs. "The path of returns between bitcoin and ether often cause dramatically different outcomes for investors depending upon their holding period." According to Bloomberg in 2020, ether outperformed bitcoin by over 150%; however, in 2019, ether's performance was negative while bitcoin delivered over 90% return.
No management fees will be payable on ETC, however, the underlying investment funds held by the Fund will pay management fees. Currently, the management fees on EBIT and ETHR are 0.75% of net asset values, plus applicable sales taxes. Visit the Evolve website for further information on EBIT (https://evolveetfs.com/product/ebit/) and ETHR (https://evolveetfs.com/product/ethr/).
About Evolve Funds Group Inc.
With approximately $2 billion in assets under management, Evolve is one of Canada's fastest growing ETF providers since launching its first ETF in September 2017. Evolve is a leader in thematic ETFs and specializes in bringing disruptive innovation ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) long term investment themes; (ii) index-based income strategies; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a proven track record of success, Evolve creates investment products that make a difference. For more information, please visit www.evolveetfs.com.
Join us on social media: Twitter | LinkedIn | Facebook
Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs). ETFs and mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to ETFs. Investors may incur customary brokerage commissions in buying or selling ETFs. Please read the prospectus before investing.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
CF Benchmarks Ltd Index Data is used under license as a source of information for certain Evolve Funds Group Inc. products. CF Benchmarks Ltd and its agents have no other connection to Evolve Funds Group Inc. products and services and do not sponsor, endorse, recommend or promote any Evolve Funds Group Inc. products or services. CF Benchmarks and its agents have no obligation or liability in connection with the Evolve Funds Group Inc. products and services. CF Benchmarks and its agents do not guarantee the accuracy and/or the completeness of any index licensed to Evolve Funds Group inc. and shall not have any liability for any errors, omissions, or interruptions therein.
SOURCE Evolve ETFs
View original content: http://www.newswire.ca/en/releases/archive/September2021/27/c1550.html