Cryptocurrency exchange Gemini has been appointed as the custodian for Evolve Funds' newly launched ETFs based on Bitcoin and Ethereum. These ETFs offer retail investors modestly leveraged exposure.
Evolve's New Offering
New exchange-traded funds (ETFs) from Evolve Funds have debuted on the Toronto Stock Exchange (TSX), offering investors slightly leveraged returns based on Bitcoin and Ethereum. The goal is 1.25x returns, achieved through cash borrowing rather than derivatives.
Gemini's Role
Gemini has been appointed as the official custodian of these ETFs, ensuring strict security measures. The exchange stated that its custody services have undergone SOC 1 Type 2 and SOC 2 Type 2 security examinations conducted by Deloitte. All assets will be kept separate on Gemini's internal ledger to protect owners' funds.
Context and Future Developments
The partnership between Gemini and Evolve is significant amid speculation about Gemini's potential public listing. Reports indicate that Gemini is working with Goldman Sachs and Citigroup on this matter. Meanwhile, Gemini recently avoided enforcement action from the U.S. Securities and Exchange Commission (SEC) regarding its Earn program.
The new ETFs from Evolve provide unique opportunities for retail investors through the use of modest leverage. Gemini's appointment as custodian highlights their commitment to security and reliability. Developments around the potential public listing of Gemini add further interest to the ongoing situation.
