Purpose Investments Inc. (“Purpose”) is thrilled to announce the world’s first Bitcoin ETF, backed by physically settled Bitcoin, is now available to investors. The Canadian dollar denominated ETF non-currency hedged units and U.S. dollar denominated ETF non-currency hedged units of Purpose Bitcoin ETF (the “ETF”) will begin trading today on the Toronto Stock Exchange (“the TSX”) under the ticker BTCC.B and BTCC.U, respectively. With a management fee of just 1.00% per annum, Purpose believes the ETF represents the simplest, most efficient and most affordable way for investors to gain direct exposure to digital currency with the convenience of registered account eligibility.
The ETF will invest directly in physically settled Bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency without the associated risk of self-custody within a digital wallet. Similar to physically backed gold or silver products, the ETF will be backed directly by physically settled Bitcoin holdings.
Due to its elegant exchange-traded fund structure, the ETF aims to accurately reflect the price of Bitcoin without the risk of the units trading at pronounced premiums or discounts to net asset value (NAV) unlike the existing closed-end bitcoin funds currently offered in the market.
“We are so happy to be able to offer this innovation to investors, making the process of owning Bitcoin easier than ever. We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset, further cementing the investment opportunity it presents,” said Som Seif, founder and CEO of Purpose. “Driving forward to be the leader in cryptocurrency investing is a testament to Purpose’s goal of providing investors with alternative investment solutions that are not based off of traditional benchmarks.”
Purpose will act as manager of the ETF and Ether Capital Corporation (“Ether Capital”), a company with significant experience and expertise in digital assets, will act as a special consultant to Purpose.
“We’ve seen the growing popularity of Bitcoin as both individual investors and institutions have increased their exposure to cryptocurrency as an asset class, using it as a tool to diversify and strengthen their portfolios,” said Brian Mosoff, CEO of Ether Capital. “By making Bitcoin more accessible to investors through the ETF, Purpose can accelerate the process of bringing cryptocurrency into the mainstream. Purpose is a leader in financial innovation and we at Ether Capital are thrilled to support Purpose. As someone involved in the cryptocurrency space since 2012 and now as leader of Ether Capital, I view today as a game changer. Not only is this a big win for investors, but it’s a milestone for the financial community and the fintech industry as a whole.”
Purpose worked in close coordination with the Ontario Securities Commission (“the OSC”) through a confidential pre-filing process through a series of meetings and presentations over the course of many months to finalize the launch of the ETF.
“The OSC was a crucial working partner in the launch of Purpose Bitcoin ETF and we are grateful for their willingness to work with us through this process. Their cooperation and guidance made it possible for us to move forward on getting this novel ETF into the hands of investors,” Seif added.