Scotiabank launches new cryptocurrency exchange-traded funds, or ETFs, in partnership with digital asset manager 3iQ, a move to highlight Canada’s history with regulated crypto investments ahead of the U.S.
Scotiabank and 3iQ introduce Dynamic Active Multi-Crypto ETF (DXMC)
One of Canada’s top-five banks by asset, Scotiabank, partnered with 3iQ to introduce the ‘Dynamic Active Multi-crypto ETF,’ or DXMC, on Cboe Canada (formerly Neo Exchange). The asset management arm of the bank, under the name Dynamic Funds, unveiled the DXMC ETF on Wednesday.
“This strategic relationship and the launch of DXMC represent a meaningful step in the convergence of traditional finance and digital assets,” Pascal St-Jean, CEO of 3iQ, stated in an official announcement. “Together, we are bringing investors a sophisticated institutional-grade multi-crypto strategy and continue to redefine crypto investing.”
Bloomberg ETF analyst Eric Balchunas called the launch a highly competitive move, as the fee seems low for actively managed ETFs in the Canadian market.
“Notable bc first bank up there to get in game and the fee is only 25bps, very low for active and Canada. Will hold the big cryptos but have 10% EQ sleeve as well,” he wrote.
Multi-asset crypto ETFs; investors’ new crypto exposure
Multi-asset crypto ETFs have recently gained popularity amongst investors for their exposure to a wide range of digital assets through a single fund. This way, investors can access multiple assets through a single product available on a traditional stock exchange instead of buying and storing multiple assets individually on a cryptocurrency exchange.
The active fund provides exposure to Bitcoin, Ether, Solana, and XRP, alongside companies involved in blockchain development, bridging traditional finance with digital assets. DXMC is reportedly providing the benefit of a simplified, actively managed selection of crypto assets.
Canada’s journey through crypto ETFs
While ETFs and stablecoins dominated the crypto talks in the U.S., particularly after regulators approved nearly a dozen spot Bitcoin ETFs in early 2024, Canada has been an early pioneer in launching ETFs since 2020 and staking ETFs in 2023, with companies like 3iQ leading the charge.
In 2021, 3iQ helped establish the market, launching the first publicly traded spot Bitcoin funds in the world, way before the SEC approved similar products. The fund quickly raised 1 billion Canadian dollars in assets under management.
The ETF market in Canada has reportedly been expanding to include spot Ether funds and other digital asset products, giving exposure to several major cryptocurrencies.
