Cryptocurrency exchange Gemini will act as the custodian for Evolve Funds' new leveraged Bitcoin and Ether ETFs, marking a pivotal development in crypto assets management.
New Partnership between Gemini and Evolve
The Winklevoss-founded cryptocurrency exchange Gemini will serve as the custodian for Canadian asset manager Evolve Funds’ newly launched leveraged Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds, LBIT and LETH. These ETFs have begun trading on the Toronto Stock Exchange, offering what Evolve calls 'modestly leveraged' exposure to retail investors.
Features of the New ETFs
In a blog announcement, Gemini stated that the ETFs aim to provide investors with 1.25x exposure to BTC and ETH, using cash borrowing instead of derivatives to amplify returns. Unlike traditional levered ETFs that use derivative strategies, these products 'will rely on cash borrowing to amplify returns that will optimize the costs of the leverage for the funds,' according to Evolve ETFs.
Gemini's Path to IPO
The partnership comes as the New York-headquartered crypto exchange, backed by twins Cameron and Tyler Winklevoss, has been working with Goldman Sachs and Citigroup on a possible public offering that could happen as soon as this year, though no final decision has been announced so far.
The partnership between Gemini and Evolve marks a significant step in the crypto industry's evolution, introducing innovative financial products. Meanwhile, Gemini continues to prepare for its potential IPO.
