Crypto exchange Gemini will safeguard assets for Evolve’s leveraged Bitcoin and Ether ETFs, which aim to optimize returns through cash borrowing.
Winklevoss-founded cryptocurrency exchange Gemini will serve as the custodian for Canadian asset manager Evolve Funds’ newly launched leveraged Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds, LBIT and LETH, which began trading on the Toronto Stock Exchange on Tuesday, offering what Evolve calls “modestly leveraged” exposure to retail investors.
In a blog announcement, Gemini said the ETFs aim to provide investors with 1.25x exposure to BTC and ETH, using cash borrowing instead of derivatives to amplify returns. Unlike traditional levered ETFs that use derivative strategies, these products “will rely on cash borrowing to amplify returns that will optimize the costs of the leverage for the funds,” according to Evolve ETFs.
“As Canada’s first modestly leveraged crypto ETF offerings available to retail investors, these products exemplify the spirit of innovation that defines today’s rapidly changing digital assets industry.”
Evolve ETFs
Gemini pointed out that its custody services include “SOC 1 Type 2 and SOC 2 Type 2 security examinations by Deloitte,” adding that assets would be “segregated on our internal ledger for the benefit of fund owners.”
The partnerhip comes as the New York-headquartered crypto exchange, backed by twins Cameron and Tyler Winklevoss, has been working with Goldman Sachs and Citigroup on a possible public offering that could happen as soon as this year, though no final decision has been announced so far.
As crypto.news noted earlier, the twins have been vocal in their support of U.S. President Donald Trump during the election cycle. His return to the White House is widely viewed as a positive development for the crypto industry.
