CIBC Mellon named fund administrator of first bitcoin ETF
15 February 2021 Canada
Image: Ronald_Landry_CIBC_Mellon
CIBC Mellon has been appointed fund administrator of Purpose Investment’s new bitcoin exchange-traded fund (ETF) after the Ontario Securities Commission (OSC) approved the launch of the fund.
The bitcoin ETF, which is believed to be the first direct custody Bitcoin ETF in the world, will allow investors efficient access to cryptocurrency without the associated risk of self-custody within a digital wallet, according to Purpose Investments.
Som Seif, founder and CEO of Purpose Investments, says: “Purpose Bitcoin ETF will change the landscape for investors by giving them a simple, efficient and affordable way to directly access the cryptocurrency.”
Purpose Investments worked closely with OSC to finalise the launch of the ETF.
“The OSC was a crucial working partner in the launch of Purpose Bitcoin ETF and we are grateful for their willingness to work with us through this process. Their cooperation and guidance made it possible for us to move forward on getting this novel ETF into the hands of investors,” Seif adds.
As part of the launch, Gemini Trust Company has been named sub custodian of the fund.
Commenting on the new mandate, CIBC Mellon’s head of product and Canadian ETF services Ronald Landry says: “Like many in the financial services industry, we aware of the rising demand from investors and industry participants with respect to digital assets such as cryptocurrencies. CIBC Mellon has been collaborating with global and domestic financial services industry stakeholders in order to evaluate potential digital asset servicing solutions to support this segment.”
Last week BNY Mellon announced the formation of its new digital assets unit, and its plans to create a client-facing prototype designed to offer the first multi-asset digital custody and administration platform for traditional and digital assets.
Landry explains: “Here in Canada, we continue to seek asset servicing solutions to support digital asset offerings: our ETF services and fund administration services are examples. Currently, we do not have custodial servicing solutions available for cryptocurrencies but are working diligently to expand our offerings and bring new capabilities online.”
The bitcoin ETF, which is believed to be the first direct custody Bitcoin ETF in the world, will allow investors efficient access to cryptocurrency without the associated risk of self-custody within a digital wallet, according to Purpose Investments.
Som Seif, founder and CEO of Purpose Investments, says: “Purpose Bitcoin ETF will change the landscape for investors by giving them a simple, efficient and affordable way to directly access the cryptocurrency.”
Purpose Investments worked closely with OSC to finalise the launch of the ETF.
“The OSC was a crucial working partner in the launch of Purpose Bitcoin ETF and we are grateful for their willingness to work with us through this process. Their cooperation and guidance made it possible for us to move forward on getting this novel ETF into the hands of investors,” Seif adds.
As part of the launch, Gemini Trust Company has been named sub custodian of the fund.
Commenting on the new mandate, CIBC Mellon’s head of product and Canadian ETF services Ronald Landry says: “Like many in the financial services industry, we aware of the rising demand from investors and industry participants with respect to digital assets such as cryptocurrencies. CIBC Mellon has been collaborating with global and domestic financial services industry stakeholders in order to evaluate potential digital asset servicing solutions to support this segment.”
Last week BNY Mellon announced the formation of its new digital assets unit, and its plans to create a client-facing prototype designed to offer the first multi-asset digital custody and administration platform for traditional and digital assets.
Landry explains: “Here in Canada, we continue to seek asset servicing solutions to support digital asset offerings: our ETF services and fund administration services are examples. Currently, we do not have custodial servicing solutions available for cryptocurrencies but are working diligently to expand our offerings and bring new capabilities online.”
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