The fund would only include the Nasdaq 100 technology category firms; meanwhile Ninepoint has expanded the focus for its Bitcoin ETF; and US firms plan Bitcoin funds
Canadian investors may soon have a new way to invest in pure technology equities thanks to a planned exchange-traded fund (ETF) from Evolve.
The Nasdaq 100 is often referred to as a technology-focused stock index, but it is made up of non-financial stocks from retail, industrial, healthcare, and more.
However, 38 of the companies listed are in the technology industry and it’s these firm’s shares that Evolve plans to focus on according to a filing with Canadian securities regulators.
The Evolve NASDAQ Technology Index Fund (QQQT) intends to track the performance of the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted™ Index (or any successor) as much as it can and before fees and expenses.
The fund will be market-capitalization-weighted and rebalanced quarterly.
Evolve’s plan comes as technology stocks are rebounding thanks to investor sentiment about artificial intelligence (AI) and other emerging technologies.
Ninepoint widens ETF scope
Ninepoint Partners also recently announced that the investment objectives of its Ninepoint Bitcoin ETF to cover a broader range of technology including Web 3, the blockchain, and digital-asset-enabled internet.
The Toronto-based alternative investment management company says that Web 3 will empower entrepreneurs, creators, individuals and enterprises to securely trade assets like money, securities, intellectual property, and art privately and peer to peer.
The transformational impact of this emerging technology is likely to follow other elements of the internet in creating winners and losers among the firms that power it.
“Our job is to identify those Web3 winners,” added John Wilson, Ninepoint’s Co-CEO and Managing Partner. “To do that we bring to bear a terrific team headed by Alex Tapscott, who has been a globally recognized leader in blockchain since 2015.” Wilson added, “Innovation is not just a buzzword for us; it is ingrained in our DNA. We are excited to be at the forefront of this technological revolution, helping our clients navigate the opportunities and challenges Web3 creates.”
Ninepoint has changed its tickers to TSX: TKN; TKN.U to better reflect the fund’s new investment objectives.
Managers try again for Bitcoin ETF approval
Meanwhile, south of the border, asset managers are still playing catch-up with Canada where the world’s first Bitcoin ETF was launched in 2021.
The world’s largest asset manager has recently filed for a spot Bitcoin ETF with the SEC.
"The fact that BlackRock, a well-respected and established asset management company, has filed for a Bitcoin ETF could be seen as a positive development in the quest for regulatory approval," Joshua Chu, group chief risk officer at blockchain technology group XBE, Coinllectibles and Marvion told Reuters.
Fidelity Investments’ Fidelity Digital Assets business is also reportedly planning to file a similar application to the US securities regulator, which is yet to approve any spot Bitcoin ETFs, only Bitcoin futures funds.
Fidelity is also said to be lining up a bid to takeover Grayscale Investments, a digital asset manager.
A year ago Grayscale filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit as the first step in a litigation process to contest the SEC’s decision on the firm’s proposal to convert Grayscale Bitcoin Trust (BTC) to a spot Bitcoin ETF.
