TORONTO, Jan. 29, 2021 /CNW/ - Evolve Funds Group Inc. ("Evolve") is pleased to announce that it has filed a preliminary prospectus with the Canadian securities regulators for the Bitcoin ETF ("EBIT" or "the Fund"). EBIT is designed to provide investors with exposure to bitcoin, by investing directly in bitcoin.
"Historically it has been difficult to gain exposure to bitcoin," says Raj Lala, President and CEO, Evolve ETFs. "EBIT aims to provide Canadian investors with a simple and effective way to access the price of bitcoin. Typically viewed as a non-correlated asset, bitcoin is gathering institutional interest and being viewed as an alternative to traditional investments, such as gold and a potential hedge against inflation."
The investment objective of EBIT is to provide investors with exposure to the daily price movements of the U.S. dollar price of bitcoin by utilizing the benefits of the creation and redemption processes offered by the exchange traded fund structure. The Fund will directly own bitcoin on the bitcoin blockchain in a cold wallet. The Fund will not seek exposure through derivatives or futures contracts. The Fund's holdings will be priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for bitcoin denominated in U.S. dollars.
EBIT intends to invest in bitcoin on a passive basis, the Fund's holdings will not be actively managed and accordingly, will not be hedged or repositioned to attempt to take defensive positions if the price of bitcoin declines or is expected to decline. The Fund will not speculate with regard to short-term changes in bitcoin prices. EBIT will not use leverage and does not intend to pay regular cash distributions.
"The investment process is paramount when investing in bitcoin," says Elliot Johnson, Chief Investment Officer and Chief Operating Officer, Evolve ETFs. "This ETF will utilize the professional and transactional cryptocurrency expertise of world-class custodians, counterparties and vendors to ensure investor confidence in their bitcoin investment."
EBIT will offer U.S. dollar denominated unhedged units ("USD Units") and Canadian dollar denominated unhedged units ("CAD Units"). EBIT does not seek to hedge any foreign currency exposure in respect of either the USD Units or the CAD Units.
About Evolve Funds Group Inc.
With over $1.6 billion in assets under management, Evolve is one of Canada's fastest growing ETF providers since launching its first ETF in September 2017. Evolve is a leader in thematic ETFs and specializes in bringing disruptive innovation ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) long term investment themes; (ii) index-based income strategies; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a proven track record of success, Evolve creates investment products that make a difference. For more information, please visit www.evolveetfs.com.
A preliminary prospectus containing important information relating to securities of the ETF has been filed with the securities commissions or similar authorities in all provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus is available on SEDAR (www.sedar.com). There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
Commissions, management fees, expenses and applicable sales taxes all may be associated with an investment in the exchange traded funds managed by Evolve Funds Group Inc. (the "ETFs"). ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
SOURCE Evolve ETFs