FREQUENTLY ASKED QUESTIONS

A covered call is an options strategy where the seller of the call option owns an equal amount of the underlying asset. The writer of the option holds a long position on the underlying asset and sells the right for someone else to buy it at a given price, which is typically slightly higher than the current price of the asset. You can find more information here.

No, at the moment we do not offer the option to redeem ETF units for your share of our cryptocurrency holdings.

Just like your chequing account, there is always risk of theft. We can’t guarantee there is no risk. However, we’ve taken every precaution possible to make sure your assets are safely held. There have been multiple instances of Bitcoin being “hacked.” These stories are true, but typically happen with unregulated exchanges that lack proper controls.  Our custodians, Gemini Trust Company and Coinbase Custody Trust Company, are qualified custodians who are licensed and regulated as New York State trust companies.  They undergo regular cybersecurity audits.

There is no minimum required for the ETF units. All you need is to buy one share. For minimums/requirements on mutual fund units, please refer to the fund facts.

- We purchase Bitcoin from Bitcoin trading platforms and over-the-counter counterparties, such as, Gemini, Coinbase Pro and other government-regulated trading platforms. These platforms may provide more information regarding mining locations and energy sources.

- However, if you are interested in investing cryptocurrencies without the associated environmental impact, we’ve got you covered. You can check our website for more information on our carbon-neutral crypto ETFs.

The premiums received on covered call options are taxed as capital gains.

Ethereum is the blockchain platform powering thousands of decentralized applications, like US dollar stablecoins, decentralized finance ("DeFi"), non-fungible tokens ("NFTs"), and decentralized autonomous organizations ("DAOs"). If Bitcoin is digital gold, Ethereum can be thought of as a world computer that can power the future of finance. Learn more about the differences here.

Ether is a cryptocurrency (or "token") that is required to transact on the Ethereum network. When ether is used to transact, it is referred to as gas.

An ether ETF provides investors with exposure to ether's price via an exchange-traded fund, which continuously offers and redeems shares based on demand. This elasticity allows the fund to closely track ether's net asset value (NAV) closely. Choosing an ether ETF provides a straightforward way to invest in ether compared with other investment options. For more info about the difference between an ether ETF and other investment vehicles, read here.

The ETF uses CoinDesk Ether Price Index (ETX) to calculate its NAV.

The fund's ether assets are safely held with a leading cryptocurrency custodian, Gemini Trust Company. Gemini is a licensed New York state trust company that undergoes regular bank exams and cybersecurity audits. Day to day, the unstaked ether is held in Purpose's secure, offline wallet with the custodian. This wallet is disconnected from the internet, significantly reducing the risk of theft.

While we cannot guarantee there is no risk, we've taken every precaution possible to ensure the assets are held safely. We store 100% of the ETF's assets offline, in cold storage with world-class cryptocurrency custodians, Gemini and Coinbase. This dual custody structure adds another layer of redundancy and provides diversification against the risk of theft or errors. Instances of Ether being "hacked" typically happen with unregulated exchanges that lack proper controls and assets stored in online hot wallets.

No, at the moment, we do not offer the option to redeem ETF units for your share of ether holdings.

Units of ETHH.B, which are backed by physically settled ether, track the spot price of ether. Units of ETHC.B also track the spot price and are backed by physically settled ether but will use Purpose's ether staking capabilities, which were developed by Ether Capital.

Staking is the process of locking up cryptocurrency to participate in maintaining and securing a blockchain network. By staking, you help validate transactions and create new blocks, earning rewards in return. This process supports the network's operations and enhances its security. For a much more comprehensive look into staking, read our staking whitepaper here.

Anyone with at least 32 ETH can stake independently, but it requires technical expertise. Those with fewer ETH or without the necessary skills can join staking pools, where their ETH is combined with others and managed by knowledgeable operators who take a fee for their service.

The main benefit of staking ETH is earning rewards for supporting the network's security and operations. Additionally, it helps improve the overall stability and efficiency of the Ethereum blockchain.

The fund will stake up to 50% of the ether held in the portfolio.

The fund does not expect to pay regular cash distributions on the fund's shares. The income generated by staking activities will accrue into the fund and increase the NAV.

If you are an institutional investor, please contact us. If you are a retail investor, unfortunately, most US brokerages do not allow retail investors to purchase foreign ETFs or mutual funds that trade on foreign exchanges. Please reach out to your brokerage to see if you can purchase the Purpose Ether Staking Corp. ETF.

The ETF only invests in and holds 100% physically settled ether.

Futures contracts have a finite lifespan. That means the fund manager has to sell expiring contracts and re-buy the contracts with a later date. This process creates a gain or loss. In a normalized market, the futures curve is upward-sloping, meaning you are selling low and buying high to maintain the same exposure to ether, resulting in additional costs to the holder. By owning physical ether, an investor doesn't need to worry about losses associated with continuously selling and re-buying futures contracts. You simply own ether.

The ETF will trade only during market hours, 9:30 AM EST – 4:00 PM EST, Monday – Friday (excluding Canadian holidays).

ETHC can be bought anytime throughout market hours, but we recommend using a limit order and avoiding purchases near market open (9:30AM EST) and close (4:00PM EST).

When buying a Canadian-listed ETF that holds assets in a different currency, an investor takes on a currency risk. This risk can either help or hurt performance, depending on whether our dollar strengthens or weakens against the foreign currency.

No, at the moment we do not offer the option to redeem ETF units for your share of our cryptocurrency holdings.

Just like your chequing account, there is always risk of theft. We can’t guarantee there is no risk. However, we’ve taken every precaution possible to make sure your assets are safely held. There have been multiple instances of Bitcoin being “hacked.” These stories are true, but typically happen with unregulated exchanges that lack proper controls. Our custodian, Gemini, has insured its assets for up to $200 million against theft.

The funds will have a monthly distribution schedule.

While we cannot guarantee future performance, mutual fund units offer the opportunity to reinvest fund distributions back into the fund without having to buy a whole share (unlike ETFs).

The premiums received on covered call options are taxed as capital gains.

The carbon offsetting fees are added to the existing fees associated with managing the Bitcoin and Ether ETFs for the carbon-neutral series.

Carbon offsetting is a process that allows individuals and companies to invest in environmental projects around the world to cancel out or neutralize their carbon footprint.
A carbon offset is a certified transferrable instrument that represents an emissions reduction.

These series are carbon neutral. They have zero carbon footprint, which they achieve by investing in traditional carbon offsets as well as negative emission offsets. The negative emission offsets remove and sequester CO2 from the atmosphere using either biological or technological methods. Negative emissions are far more effective at neutralizing a company’s emissions because the net outcome of the offset is zero.

The carbon credits are purchased from traditional carbon offset projects as well as carbon removal and sequestration projects involved with biochar, mineralization, bio-oil, enhanced weathering, improved forest management and reforestation, oceans, renewable energy, energy efficiency, gas capture, soil, and clean water. A curated list of these projects can be found here.

Through our partnership with Patch, when you invest in one of our carbon neutral series, all carbon emissions linked to your investment will be automatically targeted to achieve net zero carbon output using Patch’s API-based solution, which takes into account various inputs, such as the efficiency of mining equipment, distribution of hash power, and nation level carbon emission data, to estimate the amount of carbon emissions our portfolio have.

You can find a more detailed breakdown of our methodology here.

We do not. Offsets are expired once we buy and cancel out our portfolio’s emissions. This ensures these offsets cannot be used for anything else than to balance out the emissions of our portfolio.