asset management giant files for etf

If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.

Certain statements in this document are forward-looking.


Fidelity’s in-house bitcoin price index, per the filing.

“The Trust’s investment objective is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR (the “Index”), adjusted for the Trust’s expenses and other liabilities,” the filing notes, explaining elsewhere:

“The Trust provides direct exposure to bitcoin, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from a bitcoin spot market, or mining it.”

The fund’s name is similar to the Wise Origin Bitcoin Index Fund I, launched in August 2020 by Fidelity.


ETFs are not guaranteed; their values change frequently and past performance may not be repeated.

This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.
Investors should consult their professional advisors prior to implementing any changes to their investment strategies.

Certain statements in this document are forward-looking.

Asset management giant files for etfal

TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately C$231 billion in total assets as at December 31, 2020.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus.
Mutual funds and ETFs are not guaranteed; their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (ETFs). You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges.

If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Please read the prospectus before investing. Important information about an ETF is contained in its prospectus.

Global investment manager VanEck has filed for a mutual fund that invests in “certain” Bitcoin futures through its Cayman Islands-based subsidiary.

The “Bitcoin Strategy Fund” won’t have any exposure to the spot price of the flagship cryptocurrency:

The Fund seeks to achieve its investment objective by investing, under normal circumstances, in bitcoin futures contracts (“Bitcoin Futures”), as well as pooled investment vehicles and exchange-traded products that provide exposure to bitcoin (together with Bitcoin Futures, “Bitcoin Investments”). The Fund does not invest in bitcoin or other digital assets directly.

The fund may also put some of its remaining assets into U.S.
Treasuries, money market funds, municipal debt securities, and other investment vehicles.

As sub-advisor, Galaxy Digital will execute Ether trading on behalf of the ETF. Galaxy Digital is a diversified asset management firm dedicated to the digital asset and blockchain technology sector. The team has extensive experience spanning portfolio management, capital markets, mining, operations and blockchain technology.

“Ethereum is the leading candidate to be the base layer of Web 3.0, and Ether is a growth asset that provides investors exposure to the explosion of decentralized applications,” said Mike Novogratz, Chairman and Chief Executive Officer of Galaxy Digital Holdings.

“We are thrilled to expand our advisory relationship with CI,” said Steve Kurz, Partner and Head of Asset Management.

Asset management giant VanEck has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund called “VanEck Ethereum Trust.” If approved, its shares will be trading on the Cboe BZX Exchange.

The VanEck Ethereum Trust (the “Trust”) is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”) that trade on the Cboe BZX Exchange, Inc.

(the “Exchange”). The Trust’s investment objective is to reflect the performance of the MVIS® CryptoCompare Ethereum Benchmark Rate less the expenses of the Trust’s operations.

The preliminary prospectus lists a failure to properly transition to the proof-of-stake consensus mechanism as one of the main risks associated with the proposed ETF.

I GAM is proposing changes to the investment objectives of the following ETFs (the “Investment Objective Change Proposal” and, together with the Mergers, the “Proposals”):

  • CI First Asset Energy Giants Covered Call ETF (TSX: NXF, NXF.B)
  • CI First Asset Gold+ Giants Covered Call ETF (TSX: CGXF)
  • CI First Asset Health Care Giants Covered Call ETF (TSX: FHI, FHI.B)
  • CI First Asset Tech Giants Covered Call ETF (TSX: TXF, TXF.B).

The Investment Objective Change Proposal is intended to provide greater opportunity to diversify the investments held within the ETFs, and should lead to greater efficiency, flexibility and liquidity.

Pursuant to National Instrument 81-102 Investment Funds, unitholders of the Terminating ETFs are required to approve the Mergers and the investment objective changes require the approval of unitholders in the affected ETFs.

Alongside the proposed changes, CI GAM has revised the risk rating for certain series of three of the affected ETFs as follows:

Name

Ticker

Current Rating

New Rating

CI First Asset Energy Giants Covered Call ETF (Common Units)

NXF

Medium-to-High

High

CI First Asset Energy Giants Covered Call ETF (Unhedged Common Units)

NXF.B

Medium

Medium-to-High

CI First Asset Morningstar Canada Dividend Target 30 Index ETF (Common Units)

DXM

Low-to-Medium

Medium

CI First Asset Morningstar US Dividend Target 50 Index ETF (Unhedged Common Units)

UXM.B

Low-to-Medium

Medium

Risk rating changes are based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of investment funds.

The CI Galaxy Ethereum ETF represents a global first, giving investors a simplified path to benefit from the potential growth of this important asset class.”

CI GAM’s leadership in the cryptocurrency market is aligned with its goals of modernizing its asset management lineup to respond to evolving investor needs and includes CI Galaxy Bitcoin Fund (TSX: BTCG), which launched on the TSX in December 2020, and a preliminary prospectus for CI Galaxy Bitcoin ETF (TSX: BTCX).

A preliminary prospectus dated February 24, 2021 containing important information relating to ETHX has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment.

A copy of the preliminary prospectus is available on www.sedar.com.

With these funds, we are reducing the friction points that investors have traditionally faced in buying and holding cryptocurrencies. CI Galaxy Ethereum ETF is an important addition to that lineup as this emerging asset class gains increasing interest and validation.”

CI Galaxy Ethereum ETF will trade on the TSX under the ETHX ticker and is designed to provide investors with a convenient way to gain exposure to Ether through an institutional-quality fund platform. ETHX will invest directly in Ether with its holdings priced using the Bloomberg Galaxy Ethereum Index (“ETH Index”), which is designed to measure the performance of a single Ether traded in U.S. dollars. The ETH Index is owned and administered by Bloomberg Index Services Ltd.

CI GAM will be the manager of the ETF and Galaxy Digital Capital Management LP (“Galaxy Digital”) will act as the Ether sub-advisor for the ETF.

Similar Posts:

Leave a comment