Scotiabank Partners with 3iQ to Introduce Multi-Asset Cryptocurrency ETF in Canada
Canadian investors gain access to a newly launched actively managed cryptocurrency ETF from the bank's asset management division and 3iQ, providing Bitcoin, Ether, Solana and XRP exposure with a competitive management fee of 0.25%.
In a move that underscores the increasing institutional acceptance of digital currencies, Scotiabank—ranked among Canada's five largest financial institutions by total assets—has introduced a fresh cryptocurrency exchange-traded fund through a collaboration with 3iQ, a specialized digital asset management firm. This development comes in a marketplace that greenlit spot Bitcoin ETFs well ahead of their American counterparts.
On Wednesday, Dynamic Funds, which operates as the asset management division of Scotiabank, announced the Dynamic Active Multi-Crypto ETF. This liquid alternative investment vehicle will be available for trading on Cboe Canada using the ticker symbol DXMC, providing market participants with access to multiple digital currencies, such as Bitcoin (BTC), Ether (ETH), Solana (SOL) and XRP (XRP).
Eric Balchunas, an ETF analyst at Bloomberg, characterized the product launch as exceptionally competitive when it comes to pricing structure. According to Dynamic, the management fee has been slashed from 0.45% down to 0.25% and will remain at this reduced rate through March 1, 2027.
Exchange-traded funds that hold multiple cryptocurrency assets are experiencing rising demand as they provide market participants with diversified exposure to various digital currencies contained within one fund structure. Rather than purchasing and securing individual tokens through cryptocurrency trading platforms, investors can obtain access to numerous assets via a single regulated financial product that trades on conventional stock exchanges.
Canada's early lead in crypto ETFs
Although exchange-traded funds have captured significant attention in the United States, particularly following the regulatory approval of approximately a dozen spot Bitcoin ETFs in early 2024, Canada actually established itself as a pioneer in this investment category, with firms like 3iQ at the forefront of innovation.
The digital asset manager brought to market one of the globe's first publicly listed spot Bitcoin investment funds in Canada during 2021, multiple years prior to the US Securities and Exchange Commission greenlighting comparable products. The investment vehicle rapidly exceeded 1 billion Canadian dollars in assets under management, representing a significant achievement within that nation's more modest ETF marketplace.
Since that time, Canada has broadened its cryptocurrency ETF landscape to encompass spot Ether (ETH) funds along with additional digital-asset investment products available on trading platforms including the Toronto Stock Exchange and Cboe Canada, providing investors with regulated pathways to gain exposure to various prominent cryptocurrencies.
According to prior coverage by Cointelegraph, 3iQ entered into an acquisition agreement with Coincheck, a Japanese cryptocurrency exchange, for a purchase price of $111.84 million. The transaction is anticipated to reach completion during the second quarter of this year.