gemini to Safeguard Assets for Evolve’s Leveraged Crypto ETFs
Canadian asset manager Evolve Funds has launched two new exchange-traded funds (ETFs) for Bitcoin (BTC) and Ethereum (ETH).These ETFs, named LBIT and LETH, started trading on the Toronto Stock Exchange this week. They offer a modest 1.25x exposure to these cryptocurrencies.The unique feature is their use of cash borrowing rather of derivatives to boost returns.
Winklevoss-founded Gemini will act as the custodian for these ETFs. In a blog post, Gemini explained that the ETFs aim to provide amplified returns for investors. Unlike customary leveraged ETFs,these products use cash borrowing to optimize costs. This makes them the first of their kind in Canada, available to retail investors.
Evolve ETFs highlighted the innovative nature of these products. They believe it represents the evolving digital assets industry. Gemini, known for its secure custody services, will manage the assets. Their services include SOC 1 and SOC 2 security examinations by Deloitte, ensuring safety for fund owners.
This partnership comes as Gemini explores a possible public offering. The crypto exchange is backed by the Winklevoss twins and is working with major banks like Goldman Sachs and Citigroup. The twins have also shown support for U.S. President Donald Trump, seen as beneficial for the crypto industry.
- 1.25x exposure to BTC and ETH
- Assets will be segregated on Gemini’s internal ledger.
- They aim to provide a new way to invest in crypto with reduced risk.
For more details, visit crypto.news.
