Purpose Investments is a Canadian investment management company founded in 2013. It has taken the lead in launching bitcoin and ethereum exchange-traded funds (ETFs) in Canada, attracting over $5 billion in assets. Its Purpose Bitcoin ETF was the first bitcoin ETF in North America when it launched in 2021. Meanwhile, its Purpose Ether ETF also quickly accumulated over $260 million assets after launching in April 2022.
Purpose was the first to launch bitcoin ETF in North America
In February 2021, Purpose Investments launched the Purpose Bitcoin ETF on the Toronto Stock Exchange. It became the world’s first bitcoin ETF with physical backing. On its first trading day, it attracted investment of $80 million. By October 2021, it had accumulated over $1.4 billion in assets. The huge interest showed strong demands from institutional investors for regulated crypto investment products.
Purpose ether ETF attracted $260 million on first day
In April 2022, Purpose launched 3 ethereum ETFs in Canada on the same day. Its Purpose Ether ETF (ETHH) raised $260 million assets on the first day. The other two ether ETFs also raised over $20 million each. This showed significant investor interest in ether and ether investment products. The quick launch of ether ETFs again demonstrated Purpose’s leading position in crypto ETFs.
Purpose crypto ETFs provide easy access for institutions
The Purpose crypto ETFs trade like regular stocks on stock exchanges. This makes it convenient for institutional investors to gain exposure to crypto assets. Investing in crypto used to require opening accounts on crypto exchanges which posed regulatory compliance risks. Now with regulated crypto ETFs, asset managers can conveniently add crypto to client portfolios legally.
More competition as other Canadian ETF issuers follow
Purpose’s pioneering crypto ETFs have kicked off fierce competition in Canada’s ETF industry. Issuers like Evolve Funds, CI Global Asset Management, 3iQ, CoinShares and others have all since launched similar bitcoin and ether ETF products. There is also growing pressure and expectations for U.S. regulators to approve crypto ETFs to tap into massive institutional investor demand.
As the first mover, Purpose Investments has cemented itself as a leader in crypto ETFs in Canada. Its bitcoin and ether ETFs have accumulated billions in assets, demonstrating strong institutional demand. More competition can be expected but Purpose’s first-mover advantage will be hard to replicate.