Evolve Files Preliminary Prospectus For Bitcoin ET
TORONTO, Jan. 29, 2021 /CNW/ - Evolve Funds Group Inc. ("Evolve") is pleased to announce that it has filed a preliminary prospectus with the Canadian securities regulators for the Bitcoin ETF ("EBIT" or "the Fund"). EBIT is designed to provide investors with exposure to bitcoin, by investing directly in bitcoin.
"Historically it has been difficult to gain exposure to bitcoin," says Raj Lala, President and CEO, Evolve ETFs. "EBIT aims to provide Canadian investors with a simple and effective way to access the price of bitcoin. Typically viewed as a non-correlated asset, bitcoin is gathering institutional interest and being viewed as an alternative to traditional investments, such as gold and a potential hedge against inflation."
The investment objective of EBIT is to provide investors with exposure to the daily price movements of the U.S. dollar price of bitcoin by utilizing the benefits of the creation and redemption processes offered by the exchange traded fund structure. The Fund will directly own bitcoin on the bitcoin blockchain in a cold wallet. The Fund will not seek exposure through derivatives or futures contracts. The Fund's holdings will be priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for bitcoin denominated in U.S. dollars.
EBIT intends to invest in bitcoin on a passive basis, the Fund's holdings will not be actively managed and accordingly, will not be hedged or repositioned to attempt to take defensive positions if the price of bitcoin declines or is expected to decline. The Fund will not speculate with regard to short-term changes in bitcoin prices. EBIT will not use leverage and does not intend to pay regular cash distributions.
"The investment process is paramount when investing in bitcoin," says Elliot Johnson, Chief Investment Officer and Chief Operating Officer, Evolve ETFs. "This ETF will utilize the professional and transactional cryptocurrency expertise of world-class custodians, counterparties and vendors to ensure investor confidence in their bitcoin investment."
EBIT will offer U.S. dollar denominated unhedged units ("USD Units") and Canadian dollar denominated unhedged units ("CAD Units"). EBIT does not seek to hedge any foreign currency exposure in respect of either the USD Units or the CAD Units.