Canadian investment company Evolve Funds has announced plans to launch the country's first 1.25x leveraged Bitcoin and Ethereum products.
Canadian Crypto ETF Market
The Canadian crypto ETF market faces competition from its American counterparts. In the past five months, significant funds have been withdrawn from Canadian ETFs as investors shift to U.S.-based ETFs with lower fees and higher trading volumes.
Features of the New ETFs
Evolve Funds has filed a preliminary prospectus for leveraged Bitcoin and Ethereum products offering 1.25x exposure. Unlike U.S. funds that utilize derivatives, Evolve plans to rely on cash borrowing and monthly rebalancing.
Market Reaction
As Evolve's leveraged products roll out, the crypto investment market is actively responding. CoinShares reported that crypto ETFs recently attracted significant inflows, amounting to nearly $2 billion in the past week.
The launch of Evolve's new leveraged products could be a crucial move to strengthen its position amidst strong U.S. competition and overall market trends.
