There is increased institutional involvement in Bitcoin [BTC] and cryptocurrencies across Canada.
Dynamic Fund is the latest player to offer Canadian investors a simplified way to gain exposure to a range of crypto assets including Bitcoin, Ethereum [ETH]Solana [SOL]and Ripple [XRP].
Commenting on the move, Dynamic’s head Mark Brisley said: said crypto has matured, with several tailwinds driving investor demand.
“We have witnessed an evolution in the maturity of crypto assets, supported by growing investor demand, institutional adoption and regulatory progress.”
The Dynamic Fund aims to provide investors with long-term capital growth through exposure to multiple crypto assets.
The banks are also doubling down
The most notable aspect of this development is that Dynamic Fund serves as the asset management arm of the Bank of Nova Scotia, better known as Scotia Bank.
Canadian brokerage firms and banks have been offering access to crypto ETFs since 2021. However, Scotia Bank’s move marks a shift from banks directly entering the sector to offer active crypto ETFs. noted Bloomberg ETF analyst Eric Balchunas.
“Scotia Bank today launched an active crypto-picking ETF in Canada. Notable because it was the first bank to get started there and the fee is only 25 basis points, very low for active and Canada.”
Source: Bloomberg
Scotia’s move reflects a broader trend of major banks doubling down on crypto. Particularly in the US Morgan Stanley has made a late entry into the US spot Bitcoin ETF race.
That said, from a regional perspective, Canada was one of the bullish countries over the weekend of the Iran escalations. According to CoinShares factsthe country saw $34 million in inflows into its crypto products, bringing year-to-date (YTD) flows to $142 million.
In terms of assets under management (AUM), Canada ranks third after the US and Germany, with $4.9 billion in crypto assets.
Source: CoinShares
Like the US and Britain, Canada treats crypto as property, but only applies half of the profits for capital gains taxes.
Aside from the broader regulatory framework and maturing crypto market, Canada is only playing catch-up to the US in terms of stablecoin legislation. Yet the country is aggressively pushing for it clear rules also for the stablecoin subsector.
Final summary
- Canada’s Scotia Bank has unveiled an active multi-crypto ETF covering BTC, ETH, SOL and XRP through its asset management arm, Dynamic Fund.
- According to Bloomberg ETF analyst Eric Balchunas, Scotia is the first Canadian bank to actively offer crypto ETFs.