Product roundup: Harvest leans into crypto

If approved, the funds would be listed on Cboe Canada with the tickers HBIX and HBTE, respectively.

HBIX would give investors exposure to bitcoin, while HBTE would give investors exposure to “a unique portfolio with a focus on companies engaged in the Bitcoin and crypto ecosystem,” Harvest said in a release.

The ETFs would also pair “modest” leverage with a covered call strategy as they seek to generate additional cash flow.

“We believe that Bitcoin offers a unique growth profile as demand for this digital asset continues to grow while long term supply is limited,” said Michael Kovacs, president and CEO of Harvest, in the release.

The news comes after Evolve Funds Group Inc. announced its plan last month to bring the first leveraged bitcoin and ether ETFs to the Canadian market.

On Tuesday, Evolve said the Evolve Levered Bitcoin ETF and Evolve Levered Ether ETF are expected to begin trading on the Toronto Stock Exchange (TSX) on March 18, subject to TSX approval.

The cryptocurrency market continues to evolve as U.S. President Donald Trump has promised crypto-friendly reforms and signed an executive order to establish a U.S. bitcoin reserve.

BMO adds 10 more CDRs under its belt

Bank of Montreal (BMO) has rolled out 10 new Canadian Depository Receipts (CDRs), giving Canadian investors access to fractional shares of companies in Europe and Japan in Canadian dollars.

BMO’s new CDRs, which began trading on Monday, provide exposure to:

• German companies Allianz SE (Cboe: ALIZ), BMW Group (Cboe: BMWY), Deutsche Telekom AG (Cboe: DTEL), Siemens AG (Cboe: SIEM) and Volkswagen Group (Cboe: VWA)
• Swiss companies ABB Ltd. (Cboe: ABB), Lonza Group AG (Cboe: LON) and Zurich Insurance Group (Cboe: ZUR)
• Japanese companies Hitachi, Ltd. (Cboe: HTCI) and Sony Group Corp. (Cboe: SONY)

BMO entered the CDR market in January, following in the steps of Canadian Imperial Bank of Commerce, which was first in Canada to launch these products back in 2021.

Other product news

• RBC Indigo Asset Management Inc. has announced sub-advisor terminations for several funds in light of Royal Bank of Canada’s takeover of HSBC Canada. More information is available here.
• Fidelity Investments Canada ULC has announced the limited closure of the Fidelity Emerging Markets Fund and Fidelity Emerging Markets Class. The changes are slated to take effect on or around May 27. In a release, the fund manager said it decided to impose the “soft cap” on the two funds to “preserve the integrity” of their strategies and maximize returns for existing investors. Those who own the funds already can continue to make additional purchases, but new investors will be barred from doing so once the changes happen.
• MD Financial Management Inc. (MD) has appointed a new sub-advisor for three of its investment funds. Pzena Investment Management is slated to become a co-investment sub-advisor for the MDPIM US Equity Pool, MD American Value Fund and MD Equity Fund on or about March 25. The change will not affect the funds’ investment objectives or risk classifications, MD said in a release.
• Mackenzie Investments (Mackenzie) has announced changes to two of its mutual funds. In a release, the firm said it wants to change the investment objective for the Mackenzie Cundill Canadian Balanced Fund and both the investment strategy and risk rating for the Mackenzie Income Fund. If approved, the maximum equity securities allocation in the Mackenzie Cundill Canadian Balanced Fund will increase, while its fixed-income allocation will decrease. Also, the Mackenzie Income Fund’s weighted average credit quality is now “BB” or higher, while its risk rating has changed from “low” to “low to medium.”