Purpose Investments Inc. (“Purpose Investments” or “Purpose”) today announced the filing of a preliminary simplified prospectus and annual information form with the Canadian securities regulators in connection with the proposed launch of the world’s first actively managed cryptocurrency ETFs: Purpose Crypto Opportunities ETF, Purpose Bitcoin Yield ETF, and Purpose Ether Yield ETF (collectively, the “Cryptocurrency ETFs”). The filing follows Purpose’s launch of Purpose Bitcoin ETF and Purpose Ether ETF, the world’s first Bitcoin ETF and Ether ETF, respectively, earlier in the year.
“We see a lot of potential value in an active management approach to cryptocurrency investments, and we’re excited to take the first step globally to provide access to investors through public ETF vehicles,” says Vlad Tasevski, Chief Operating Officer and Head of Product at Purpose Investments. “We have been focused on democratizing access to cryptocurrency investing so that everyone can benefit from the potential of this emerging asset class. We will continue to take on a leadership role and ensure we’re providing investors with the highest quality and most practical solutions they need.”
Purpose Crypto Opportunities ETF seeks to provide unitholders with long-term capital appreciation by investing primarily in securities that provide exposure to digital assets. To achieve its investment objectives the fund will invest primarily in publicly listed securities (including investment funds) and derivative instruments that provide exposure to digital assets (including Bitcoin and/or Ether).
Purpose Bitcoin Yield ETF seeks to provide unitholders with (a) monthly distributions and (b) long-term capital appreciation. The fund will achieve its investment objectives primarily by obtaining direct and/or indirect exposure to Bitcoin and by implementing a derivatives based strategy in respect of portfolio securities.
Purpose Ether Yield ETF seeks to provide unitholders with (a) monthly distributions and (b) long-term capital appreciation. The fund will achieve its investment objectives primarily by obtaining direct and/or indirect exposure to Ether and by implementing a derivatives based strategy in respect of portfolio securities.
“The cryptocurrency markets are known for their volatility. We filed to launch these actively managed cryptocurrency ETFs to help investors benefit from active management by seasoned investment professionals who will be well-positioned to generate income, and manage risk and the volatility for investors,” says Greg Taylor, Chief Investment Officer of Purpose.
Purpose will act as manager of the cryptocurrency ETFs and portfolio manager for Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF. Neuberger Berman Breton Hill ULC (“Neuberger Berman”) will act as the investment subadvisor for Purpose Crypto Opportunities ETF.
Purpose Investments is one of the largest digital asset managers in the world, with a robust and innovative product suite. The Purpose Bitcoin ETF is available in three ETF series, including Canadian dollar denominated ETF currency hedged units (TSX: BTCC), Canadian dollar denominated ETF non-currency hedged units (TSX: BTCC.B), U.S. dollar denominated ETF non-currency hedged units (TSX: BTCC.U), and mutual fund units. Likewise, the Purpose Ether ETF is available in mutual fund units and the same three ETF series, trading under the tickers: ETHH, ETHH.B and ETHH.U.
Purpose will also be launching the Purpose DeFi Opportunities Fund as a privately offered fund focused on providing exposure to the growing opportunities in decentralized finance and the unique DeFi investment universe.
About Purpose Investments Inc.
Purpose Investments Inc. is an asset management company with more than $12 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,400 professionals. For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the Principles for Responsible Investment (PRI) named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for its approach to ESG integration across asset classes. The firm manages $437 billion in client assets as of September 30, 2021. For more information, please visit website at www.nb.com.
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A preliminary simplified prospectus and preliminary annual information form relating to the Cryptocurrency ETFs (collectively, the “Preliminary Prospectus”) has been filed with the Canadian securities commissions or similar authorities. You cannot buy securities of the Cryptocurrency ETFs until the relevant securities commissions or similar authorities issue receipts for the final simplified prospectus and annual information form of the Cryptocurrency ETFs. Important information about the Cryptocurrency ETFs is contained in the Preliminary Prospectus. Copies of the Preliminary Prospectus may be obtained from Purpose, or at www.purposeinvest.com.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. Investment funds are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. There can be no assurance that the full amount of your investment in a fund will be returned to you. 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.