Scotiabank-backed multi-crypto ETF launches in Canada with Bitcoin, Ether, Solana, XRP

The Dynamic Active Multi-Crypto ETF has officially launched in Canada, offering investors regulated access to multiple digital assets through a single exchange-traded fund.

The Dynamic Active Multi-Crypto ETF, introduced Wednesday through a partnership between Toronto-based asset manager 3iQ and Dynamic Funds which is the asset management arm of Scotiabank trades on Cboe Canada under the ticker DXMC.

The Dynamic Active Multi-Crypto ETF provides exposure to four leading digital assets which are Bitcoin, Ether, Solana, and XRP within a regulated investment vehicle listed on a traditional stock exchange.

Investors can gain diversified crypto exposure through standard brokerage accounts without managing crypto wallets, private keys, or exchange logins.

The launch reflects the continued expansion of regulated crypto investment products in Canada and highlights how institutional players are positioning themselves in the evolving digital asset market.

Canada’s early lead in crypto ETFs

The Dynamic Active Multi-Crypto ETF enters a market where Canada has historically been ahead of many global peers in approving regulated cryptocurrency investment products.

Back in 2021, 3iQ debuted one of the world’s first publicly traded spot Bitcoin funds, years before regulators in the United States approved similar products in early 2024.

That fund eventually surpassed 1 billion Canadian dollars in assets under management, a notable achievement given that Canada’s ETF market is significantly smaller than that of its southern neighbor.

The introduction of the Dynamic Active Multi-Crypto ETF builds on that track record by expanding beyond single-asset products to a diversified digital asset portfolio.

For investors seeking broader exposure, multi-asset funds like the Dynamic Active Multi-Crypto ETF simplify the process of gaining exposure to several cryptocurrencies simultaneously without having to purchase and manage them individually.

Fee cut draws early industry attention

Even before the Dynamic Active Multi-Crypto ETF completed its first full trading day, its fee structure had already attracted attention within the ETF industry.

Dynamic Funds set the management fee at 0.25%, a reduction from the originally proposed 0.45%, and committed to maintaining that rate until March 1, 2027.

Eric Balchunas highlighted the pricing publicly, describing it as “highly competitive within the space.” — Eric Balchunas, Bloomberg ETF analyst.

Lower fees can play a significant role in attracting long-term investors, particularly in the ETF market where cost efficiency is often a deciding factor for portfolio allocation.

The pricing strategy positions the Dynamic Active Multi-Crypto ETF competitively among emerging crypto investment products, particularly as institutional and retail investors increasingly seek diversified exposure to digital assets.

Asset selection reflects shifting institutional sentiment

The asset mix within the Dynamic Active Multi-Crypto ETF also signals evolving institutional confidence in several major cryptocurrencies.

Bitcoin and Ether are widely considered core holdings in most institutional crypto products due to their market dominance and liquidity.

Their inclusion in the Dynamic Active Multi-Crypto ETF aligns with existing trends across regulated crypto funds.

However, the addition of Solana and XRP suggests expanding institutional interest beyond the two largest cryptocurrencies.

XRP’s presence is particularly notable due to its long-running legal dispute with U.S. regulators, which had previously created uncertainty around its institutional acceptance.

Its inclusion in the Dynamic Active Multi-Crypto ETF indicates that, at least within Canada’s regulatory framework, the asset has cleared compliance thresholds for a bank-backed investment product.

Ownership shift could shape 3iQ’s next phase

The launch of the Dynamic Active Multi-Crypto ETF also arrives as 3iQ prepares for a potential ownership transition.

Reports indicate that Japanese cryptocurrency exchange Coincheck has agreed to acquire 3iQ in a stock deal valued at approximately $112 million.

The transaction has not yet closed but is expected to be finalized sometime in the second quarter of this year.

If completed, the acquisition could influence the future direction of the firm’s digital asset investment products, including how the Dynamic Active Multi-Crypto ETF evolves and whether new partnerships emerge.

For now, the entry of Scotiabank’s asset management arm into the sector through the Dynamic Active Multi-Crypto ETF adds another major financial institution to Canada’s expanding list of regulated crypto providers.

By allowing investors to access diversified digital assets through traditional brokerage accounts, the Dynamic Active Multi-Crypto ETF underscores Canada’s continued role as a testing ground for institutional cryptocurrency investment products.