As stablecoins and other tokenized assets gain traction, Global X Investments Canada Inc. has introduced an ETF that seeks to capitalize on the growth of companies in the tokenized finance space.
Launched Thursday, the Global X Tokenization Ecosystem Index ETF (TSX: TOKN) seeks to replicate, to the extent possible and net of expenses, the performance of the Mirae Asset Stablecoins and Tokenization CAD Index.
The index provides exposure to companies driving and adopting tokenized financial infrastructure, including stablecoin issuers, tokenization platforms, trading and distribution venues, as well as payment, settlement and custody infrastructure providers. Its top five holdings include Nu Holdings Ltd., Block, Inc., Fiserv, Inc., Robinhood Markets, Inc. and Coinbase Global, Inc.
In a release, Global X said “tokenized U.S. Treasuries have already grown into a multi-billion-dollar market, with nearly US$10 billion currently issued on-chain and utilized by major asset managers and funds,” and that there’s potential for long-term growth in this space.
Just this week, the New York Stock Exchange owner Intercontinental Exchange said it’s working on a digital platform, independent from the NYSE, that would enable investors to trade digital tokens around the clock.
In light of the increased development and adoption of tokenized assets, the Canadian government committed in its latest federal budget to rolling out new legislation to regulate fiat-backed stablecoins. As previously reported, the legislation will require issuers to maintain and manage adequate reserves, establish redemption policies and implement risk management frameworks, among other requirements.
Further, Stablecorp Digital Currencies Inc. claimed in late November that its QCAD digital token was the first Canadian dollar-linked stablecoin to receive regulatory approval.
“The shift toward tokenization and stablecoins represents the next generation of financial technology, and we’re already seeing meaningful implementation underway across global financial markets,” Ken Chen, senior analyst, portfolio manager, index strategies with Global X, in the release.
TOKN has a 0.49% management fee.
Harvest grows its U.S. single-stock ETF lineup
Harvest Portfolios Group Inc. has expanded its U.S. single-stock ETF lineup with six new funds.
The funds, which employ an active covered call writing strategy and around 25% leverage, and have a 0.4% management fee, include:
- Harvest Block Enhanced High Income Shares ETF (TSX: BLKY), which holds Block, Inc.
- Harvest CrowdStrike Enhanced High Income Shares ETF (TSX: CRWY), which holds CrowdStrike Holdings, Inc.
- Harvest JnJ Enhanced High Income Shares ETF (TSX: JNJY), which holds Johnson & Johnson
- Harvest JPHE Enhanced High Income Shares ETF (TSX: JPHE), which holds JPMorgan Chase & Co.
- Harvest Novo Enhanced High Income Shares ETF (TSX: NOVY), which holds Novo Nordisk A/S
- Harvest Oracle Enhanced High Income Shares ETF (TSX: ORCY), which holds Oracle Corp.
With these launches, Harvest now offers 25 U.S. single-stock ETFs in total.
Between its U.S. and Canadian single-stock ETF lineups, Harvest is the largest issuer of single-stock ETFs in Canada, the firm’s CEO, Michael Kovacs, said in a release.
Two new ETFs from Hamilton ETFs
Hamilton Capital Partners Inc. (Hamilton ETFs) rolled out two new ETFs on Wednesday.
The HAMILTON CHAMPIONS U.S. Technology Index ETF (TSX: QMVP) seeks to replicate, to the extent possible and before fees and expenses are deducted, the performance of the Solactive HAMILTON CHAMPIONS U.S. Technology Index.
That index’s top five holdings include Alphabet Inc., Meta Platforms, Inc., Apple Inc., Tesla, Inc. and Broadcom Inc.
The HAMILTON CHAMPIONS Utilities Index ETF (TSX: UMVP) seeks to replicate, to the extent possible and before fees and expenses, the performance of the Solactive Canadian Utility Services High Dividend Index.
That index’s top five holdings include Hydro One Ltd., BCE Inc., Emera Inc., TC Energy Corp. and Fortis Inc.
In a release, Hamilton ETFs co-CEO Pat Sommerville said the new funds “emphasize market-leading companies, disciplined index construction, and low-cost exposure for long-term investors.”
They each have a 0.19% management fee.
RPIA signals end for fund
RPIA says it’s closing its RP Target 2026 Discount Bond Fund.
The fund is no longer available for purchase as of this Thursday, and it’s expected to be terminated on March 24.
“In connection with the termination of the fund, the assets of the fund will be liquidated in an orderly fashion,” a release said.
Existing unitholders of the RP Target 2026 Discount Bond have the option of either switching to units of another RPIA mutual fund, or redeeming all units of the fund until markets close on March 20, with short-term trading fees waived in either case.
RPIA noted in the release that its RP Target 2028 Discount Bond Fund, which launched last November, “is designed to operate in a similar manner through its focus on taking advantage of the prevailing short-term opportunity in bond markets while preserving investor capital.”