Crypto firm Gemini announced that it will serve as the custodian for the newly launched Evolve Levered Bitcoin ETF (LBIT) and Evolve Levered Ether ETF (LETH). These ETFs began trading on the Toronto Stock Exchange on Tuesday.
As per the official statement, Both ETFs are designed to provide investors with leveraged exposure to the crypto market, aiming to amplify returns while adhering to strict security and regulatory standards. The launch marks a milestone as Canada’s first modestly leveraged crypto ETFs available to retail investors, offering a new level of flexibility and opportunity in the crypto space.
Unlike traditional leveraged ETFs that rely on derivatives, the Evolve ETFs will use cash borrowing to enhance returns. This plan aims to optimize the costs associated with leverage while maintaining a 1.25x exposure to Bitcoin and Ethereum. The strategy thus plans for a balanced approach to risk and reward, making the funds an appealing choice for those looking to capture potential upsides in the volatile crypto market.
Evolve is involved in creating products that cater to both institutional and retail investors. Gemini’s involvement as custodian underscores the growing partnership between traditional financial institutions and the digital asset space.
Gemini, known for its strong security measures, has earned SOC 1 Type 2 and SOC 2 Type 2 certifications from Deloitte that ensures that all assets under its custody are securely segregated.
Also Read: State Street: Crypto ETF Assets to Surpass Precious Metals by Year-End
