Gemini to serve as custodian for Evolve leveraged crypto ETFs
Gemini announced its role as the custodian
Сrypto exchange Gemini is set to become the custodian for Evolve Funds’ newly launched leveraged Bitcoin and Ether ETFs (LBIT and LETH), which began trading on the Toronto Stock Exchange on Tuesday.
The move marks a significant step for the Canadian asset manager as it aims to provide retail investors with “modestly leveraged” exposure to major cryptocurrencies.
Gemini's important statements
- Custody partnership: Gemini will safeguard assets for Evolve’s leveraged ETFs.
- Leveraged exposure: The ETFs offer 1.25x exposure using cash borrowing instead of derivatives.
- Regulatory compliance: The strategy is designed to optimize leverage costs while adhering to a more transparent structure.
Custody and launch
In a recent blog post, Gemini announced its role as the custodian for Evolve’s innovative leveraged ETFs. The ETFs, known as LBIT for Bitcoin and LETH for Ether, were launched on the Toronto Stock Exchange, providing Canadian investors with a regulated means to access leveraged crypto exposure.
Gemini’s role underscores its robust custody services and commitment to regulatory compliance, ensuring that investor assets are held securely as these new products enter the market.
Leveraged exposure and strategy
Unlike traditional leveraged ETFs that typically rely on derivatives, Evolve’s new products use cash borrowing to amplify returns. This approach aims to optimize the cost of leverage for the funds while offering a simpler, more transparent structure. The ETFs are designed to provide a 1.25x exposure to Bitcoin and Ethereum, giving retail investors a chance to benefit from a controlled level of leverage.
According to Evolve, this “modestly leveraged” exposure is intended to balance potential gains with risk management, making the products appealing to those cautious of excessive volatility.
These ETFs began trading on Tuesday, market watchers will assess whether the cash borrowing model can deliver consistent returns and mitigate risk compared to derivative-based alternatives. Gemini’s involvement as a custodian further bolsters investor confidence in these products.
We've also informed you earlier that Gemini expands USD payment support in UK and EU.
