Gemini Becomes Custodian for Evolve Levered Bitcoin and Ether ETFs

Crypto firm Gemini announced it will serve as the custodian for the newly launched Evolve Levered Bitcoin ETF (LBIT) and Evolve Levered Ether ETF (LETH), which began trading on the Toronto Stock Exchange on Tuesday.

According to 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. This launch marks a milestone as Canada’s first modestly leveraged crypto ETFs available to retail investors, offering new levels of flexibility and opportunity in the crypto space.

Unlike traditional leveraged ETFs that rely on derivatives, Evolve ETFs will use cash borrowing to enhance returns. The strategy aims for a balanced approach to risk and reward while maintaining 1.25x exposure to Bitcoin and Ethereum. This plan aims to optimize the costs associated with leverage, making the funds appealing for those looking to capture potential upsides in the volatile crypto market.

Evolve is focused on creating products for both institutional and retail investors, and Gemini’s role as custodian highlights 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, ensuring that all assets under its custody are securely segregated.

Also Read: State Street: Crypto ETF Assets to Surpass Precious Metals by Year-End