Purpose Investments Launches Bitcoin and Ethereum ETFs, Will Pay 8%-10% Monthly Yield


Purpose Investments has launched a new crypto exchange-traded fund (ETF) in Canada after introducing the first Bitcoin ETF in North America in February this year.

The funds are Purpose Bitcoin Yield ETF (BTCY.B) and Purpose Ether Yield ETF (ETHY.B), which began trading on the Toronto Stock Exchange this week.

The difference between the Bitcoin and Ether ETFs that began trading earlier this year and the latest Canadian-dollar-denominated ETF non-currency hedged ETFs is that the latter will pay investors a monthly yield.

However, due to the volatility, the company says it can’t guarantee the payout amount though it expects an annual yield of between 8%-10% for both ETFs while charging a management fee of 1.10%.

Vlad Tasevski, COO and head of product at Purpose Investments, says investors could consider these ETFs if they want exposure to the asset class without getting exposed to its intense volatility. But while the losses will be smaller, so will be the gains.

“They should also consider if they want to earn yield while they hold them. Covered call options allow investors to generate additional short-term income on an asset they believe has long-term potential,” Tasevski told Yahoo Finance Canada.

“Given the connection between the volatility of the underlying asset and premiums, covered call strategies on cryptocurrencies offer unique exposure to a unique asset class, providing investors a high yield without sacrificing significant price participation.”

Purpose Investment’s third fund, called the Purpose Crypto Opportunities ETF, also began trading on Tuesday. Canadian-dollar-denominated ETF non-currency hedged units, and U.S.-dollar-denominated ETF non-currency hedged units begin trading under the tickers CRYP, CRYP.B, and CRYP.U.

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