Canada's Scotiabank launches multi-crypto ETF with 3iQ

Scotiabank, one of Canada’s top-five banks by assets, has launched a new cryptocurrency exchange-traded fund in partnership with digital asset manager 3iQ, highlighting growing institutional adoption in a market that approved spot Bitcoin ETFs years before the United States.

Dynamic Funds, Scotiabank’s asset management arm, unveiled the Dynamic Active Multi-Crypto ETF on Wednesday. The liquid alternative fund will trade on Cboe Canada under the ticker DXMC, offering investors exposure to several digital assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL) and XRP (XRP).

Bloomberg ETF analyst Eric Balchunas described the launch as highly competitive from a fee perspective. Dynamic said it reduced the fee from 0.45% to 0.25% until March 1, 2027.

Multi-asset crypto ETFs are gaining popularity because they offer investors exposure to a basket of digital assets within a single fund. Instead of buying and storing tokens individually on cryptocurrency exchanges, investors can access multiple assets through a single regulated product traded on a traditional stock exchange.

Related: Canada’s CIRO formalizes interim crypto custody framework

Canada’s early lead in crypto ETFs

While ETFs have dominated the conversation in the United States, especially after regulators approved nearly a dozen spot Bitcoin ETFs in early 2024, Canada was actually an early mover in the asset class, with companies like 3iQ leading the charge.

The asset manager launched one of the world’s first publicly traded spot Bitcoin funds in Canada in 2021, years before the US Securities and Exchange Commission approved similar products. The fund quickly surpassed 1 billion Canadian dollars in assets under management, a notable milestone in that country’s smaller ETF market.

Canada has since expanded its crypto ETF market to include spot Ether (ETH) funds and other digital-asset products listed on exchanges such as the Toronto Stock Exchange and Cboe Canada, giving investors regulated exposure to several major cryptocurrencies.

As previously reported, 3iQ was recently acquired by Japanese cryptocurrency exchange Coincheck for $111.84 million. The deal is expected to close in the second quarter of this year.

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