Canada's Scotiabank launches multi-cryptocurrency ETF fund in partnership with 3iQ

Scotiabank, one of the five largest banks in Canada by total assets, has partnered with digital asset management firm 3iQ to launch a new cryptocurrency index ETF. This move highlights the significant increase in cryptocurrency adoption by financial institutions in Canada — a country that has approved spot Bitcoin ETFs years before the United States.

Last Wednesday, Scotiabank’s asset management division, Dynamic Funds, officially introduced the Dynamic Active Multi-Crypto ETF. This liquid alternative fund is listed on the Cboe Canada exchange under the ticker DXMC, allowing investors to access a portfolio of leading digital assets such as Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP (XRP).

Bloomberg ETF analyst Eric Balchunas noted that the new fund has highly competitive fees. According to a statement from Dynamic Funds, the management fee has been reduced from 0.45% to just 0.25%, effective until March 1, 2027.

Growth Trends of Multi-Crypto ETF Funds

Multi-asset crypto ETFs are increasingly popular because they offer investors the opportunity to access a diversified digital asset portfolio within a single product. Instead of buying and storing each cryptocurrency separately on exchanges, investors can hold multiple digital assets through a managed product traded on traditional stock exchanges.

Canada Pioneers in the Cryptocurrency ETF Sector

While recent ETFs have gained attention in the U.S., especially after regulators approved nearly a dozen spot Bitcoin ETFs in early 2024, Canada has actually been at the forefront of this field. Companies like 3iQ pioneered by launching one of the first publicly traded spot Bitcoin funds in 2021 — years before the U.S. Securities and Exchange Commission (SEC) approved similar products. This fund quickly surpassed CAD 1 billion in assets under management, marking a significant milestone in Canada’s ETF market.

Since then, Canada has expanded its cryptocurrency ETF market to include spot Ether (ETH) funds and other digital asset products listed on major exchanges such as the Toronto Stock Exchange and Cboe Canada. This provides investors with transparent, managed access to major cryptocurrencies.

According to Coinphoton, 3iQ was recently acquired by Japan’s leading cryptocurrency exchange Coincheck for up to $111.84 million. The deal is expected to close in the second quarter of this year, marking an important step in 3iQ’s global expansion.