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Alternatives—
Purpose Bitcoin Yield ETF
Purpose announced its intent to change of the investment objectives of Purpose Bitcoin Yield ETF. Read more.
Frequently Asked Questions
How do covered call ETFs work?
A covered call is an options’ strategy where the seller of the call option owns an equal amount of the underlying asset. The writer of the option holds a long position on the underlying asset and sells the right for someone else to buy it at a given price, which is typically slightly higher than the current price of the asset. You can find more information here.
How is the income or yield generated on the ETF?
The yield is generated by selling covered call options on the underlying Bitcoin (or Ether) and collecting the associated premium.
Do I only get the yield or also the upside from the underlying ETF?
The fund sells covered call options on a portion of the portfolio (Bitcoin or Ether), which means investors will participate in most of the upward price movement while generating a yield from option premiums.
How will the yield from BTCY (and ETHY) be taxed?
The premiums received on covered call options are taxed as capital gains.
What is the frequency of the distribution?
The funds will have a monthly distribution schedule.
Does this ETF hold “spot” crypto?
BTCY and ETHY hold Purpose BTCC and ETHH, respectively, providing exposure to the spot price of Bitcoin (or Ether) without using futures contract.
Am I allowed to invest if I’m located outside Canada?
We allow our products to be invested in from anywhere in the world. For investors located outside of Canada, we recommend reaching out to a local brokerage or investment advisor to learn more about the specifics of your situation.
Will the DRIP yield be enough to buy a share?
While we cannot guarantee future performance, mutual fund units offer the opportunity to reinvest fund distributions back into the fund without having to buy a whole share (unlike ETFs).
Can I convert my existing Bitcoin/Ether to any of the crypto funds?
Currently there is no in-kind option to convert existing Bitcoin/Ether holdings to one of Purpose’s crypto funds.
What is the minimum required investment amount?
There is no minimum required for the ETF units, all you need is to buy one share. For minimums/requirements on mutual fund units, please refer to the fund facts.
Why can I not find the ETF on my brokerage account?
We do not limit or restrict investment into our funds. For more information on this issue, we would suggest reaching out to your brokerage.
Is your Bitcoin/Ether mined using environmentally conscious methods?
- We purchase Bitcoin from Bitcoin trading platforms and over-the-counter counterparties, such as, Gemini, Coinbase Pro and other government-regulated trading platforms. These platforms may provide more information regarding mining locations and energy sources.
- However, if you are interested in investing cryptocurrencies without the associated environmental impact, we’ve got you covered. You can check our website for more information on our carbon neutral crypto ETFs.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. The prospectus contains important detailed information about the investment fund. Copies of the prospectus are available from purposeinvest.com. Please read the prospectus before investing. There is no assurance that any fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. The indicated rate of return is the historical annual compounded total return including changes in share/unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns.
This information is provided for illustrative and discussion purposes only. This material is not intended as a formal research report and should not be relied upon as a basis for making an investment decision. Historical trends do not imply, forecast or guarantee future results. Information is as of the date indicated and subject to change without notice. Nothing herein constitutes a prediction or projection of future events or future market behavior.
If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Crypto assets can be extremely volatile and there is no guarantee that the amount invested will be returned to you.