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:
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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.
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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