Crypto ETF Monthly payouts in Canada

📈 Investing & Markets Crypto
#1

I just came across this article. It’s a managed ETF for Bitcoin BTCY.B, Etherum ETHY.B, and Purpose Crypto Opportunities CRYB, CRYB.B and CRYP.B

They have monthly payouts and the amounts vary because of volatility but should be between 8-10%

Does anyone with more knowledge have any input on these? I’m not sure what to make of it just yet.

#2

What we have to do is take a look at how these Bitcoin ETF’s are structured. I believe the Proshares Bitcoin ETF, BITO, is something that Muslims should try to stay away from as it doesn’t actually invest in BTC, but rather in BTC futures.

I’ll defer to someone more knowledgeable to give an answer, but in the meantime this is another call for the Zoya team to expand the our ETF and Fund universe beyond those that are listed in the US.

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#3

Two observations based on a quick scan of the factsheets:

  • It appears the yield is generated through a covered call strategy (ie. options)
  • The Crypto Opportunities fund is also involved in futures trading

I would suggest caution given the majority opinion among scholars is that options trading and futures are impermissible. Our shariah advisor Shaikh @Joe holds the minority opposing opinion regarding options trading but I would recommend doing further research to learn more.

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#4

Any thoughts or has anyone looked into the way the Grayscale Funds (GBTC/ETHE/etc) are structured? They do hold BTC/ETH in spot (not futures), but do not track the underlying assets 1:1. I’m curious if that effects their permissibility?
@Joe