Purpose Investments has launched a new cryptocurrency exchange traded fund (ETF) that is the first to pay a monthly dividend to investors.
Toronto-based Purpose Investments launched the world's first Bitcoin ETF earlier this year and has now introduced three new funds on the Toronto Stock Exchange (TSX) that will be the first cryptocurrency assets that pay out a monthly dividend.
Purpose Investments most-heavily traded Bitcoin fund now has more than 24,000 Bitcoins in it. Unlike a dividend on a stock, which generally pays out a predictable amount on a monthly, quarterly or annual basis, the money the new funds will pay out monthly will vary depending on the price of the cryptocurrency that the ETF tracks.
The yield on the 60 biggest dividend-paying companies on the TSX currently is 2.5%. As actively managed funds, the new Purpose Investments cryptocurrency ETFs charge a management expense ratio of between 1.10% and 1.25%.
