Crypto Quill

Canada’s crypto ETF scene just got a serious shake-up. Evolve Funds has rolled out the country’s first modestly leveraged crypto ETFs, and crypto giant Gemini is stepping in as custodian.

The two funds—Evolve Levered Bitcoin ETF (LBIT) and Evolve Levered Ether ETF (LETH)—started trading Tuesday on the Toronto Stock Exchange. Each offers 1.25x exposure to Bitcoin and Ethereum, making them a first for retail investors looking to go beyond basic exposure to digital assets—without diving into the deep end of risky derivatives.

A Fresh Take on Leverage, Minus the Derivatives

This isn’t your typical leveraged ETF. Most funds in this category boost returns using derivatives—those often-misunderstood, high-risk contracts that can spiral fast.

Evolve’s approach is different.

Rather than derivatives, the funds use cash borrowing to achieve the 1.25x exposure. In plain English: they borrow money directly, aiming for a cleaner, more cost-efficient strategy.

That tweak matters. Using cash instead of derivatives helps cut down on some of the hidden costs and volatility that have plagued other leveraged financial products.

For everyday investors dipping their toes into the crypto pool, that simplicity is appealing.

Gemini’s Role: Not Just a Name, But a Statement

Gemini isn’t just along for the ride. As custodian, it’s now responsible for safeguarding all the crypto assets tied to these ETFs.

The company, founded by the Winklevoss twins, has made security its calling card. Its custody platform boasts SOC 1 Type 2 and SOC 2 Type 2 certifications from Deloitte—basically a gold seal in financial compliance.

There’s no such thing as risk-free in crypto, but Gemini’s involvement may offer a little peace of mind to investors still wary of digital assets after the chaos of past market cycles.

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Canada Keeps Pushing the Crypto ETF Envelope

Canada has been quietly leading the way on crypto ETFs for a while now. It was first out of the gate with a Bitcoin ETF back in 2021. Now it’s first again—with modestly leveraged versions aimed at retail players.

This isn’t just about bragging rights.

Here’s what sets the new funds apart:

• Access: Retail investors can finally access leveraged crypto exposure without using complex tools.
• Regulated: The ETFs operate within a tightly monitored framework—something that’s still missing in many countries.
• Structure: Cash borrowing vs derivatives keeps things simpler and potentially cheaper.

These are designed as daily-reset ETFs, meaning they adjust to maintain the 1.25x exposure daily. It’s a model used in other sectors—but a first for Bitcoin and Ether in Canada.

Not for the Faint of Heart—But a Sign of Maturity

Crypto is still a rollercoaster. And adding leverage? That just makes the ride wilder.

These ETFs aren’t meant to sit in your retirement portfolio for decades. They’re short-term vehicles for people who know what they’re getting into. But their launch marks something bigger than just a new product.

It shows crypto’s continuing move into mainstream finance—step by cautious step.

Gemini’s involvement is a big part of that narrative.

While the company has faced its own headwinds—including a tough regulatory landscape in the U.S.—its international partnerships and custody work keep expanding. Taking on the Evolve ETFs fits with that strategy.

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Table: Key Details of the New Evolve Leveraged Crypto ETFs

Institutional Meets Individual

There’s a subtle shift happening here. Products like these used to be the playground of hedge funds and big-money players. Now, they’re making their way into retail brokerage accounts.

Evolve isn’t new to this space. The firm has built a portfolio of innovative ETFs across multiple asset classes. What makes this launch interesting is that it straddles the line between institutional-grade sophistication and everyday accessibility.

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And Gemini’s playing both sides too—its institutional custody roots are now underpinning products for small-scale investors.

What’s Next?

Crypto still isn’t out of the woods. Volatility, regulation, and public perception all remain major hurdles.

But financial products like LBIT and LETH point to where things are going. Not toward wild west speculation, but toward structured, regulated, and—dare we say it—boring options.

And boring might just be what crypto needs to win over the next wave of investors.