Purpose investments to offer world’s first crypto monthly-yield ETFs
Purpose Investments, which launched the world’s first Bitcoin ETF, is now set to offer crypto investment vehicles that will pay out a monthly yield to stock purchasers.
Announcing the news on Tuesday, the investment firm listed three cryptocurrencies ETFs on the Toronto Stock Exchange. The exchange-traded products are called Purpose Bitcoin Yield ETF, Purpose Ether Yield ETF, and Purpose Crypto Opportunities ETF.
The investment vehicles would be actively managed funds and will engage in a covered call strategy to pay monthly yields to stockholders. A covered call strategy is a strategy to hold assets and later sell the call options of that particular asset. Stakeholders receive a premium as consideration for abandoning the gains on the rise of the assets holders own above a certain limit.
The Purpose Bitcoin Yield ETF and the Purpose Ether Yield ETF will invest in Bitcoin and Ethereum, respectively, and operate on a derivative-based strategy to offer long-term capital appreciation.
“With these ETFs, we aim to expand the ways investors can access crypto markets and generate the unique returns available in this emerging asset class. In addition, these products will complement our existing Bitcoin and Ether ETFs and provide a different form of return-and-risk profiles for investors,” said Som Seif, Founder and CEO at Purpose Investments.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow
