In a landmark development for institutional cryptocurrency adoption, Scotiabank (Bank of Nova Scotia) and digital asset manager 3iQ have launched the Dynamic Active Multi-Crypto ETF (DXMC) on Cboe Canada. This pioneering fund provides regulated, diversified exposure to a basket of leading cryptocurrencies through an actively managed strategy.
The ETF's portfolio includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP. Unlike passive crypto ETFs that track a single asset, DXMC employs active management where 3iQ's team adjusts portfolio weightings based on market conditions. The fund features a competitive management fee of 0.25% until March 1, 2027, which is notably lower than many traditional actively managed funds.
The partnership represents a significant convergence of traditional and digital finance. Scotiabank, one of Canada's "Big Five" banks, brings institutional credibility, regulatory experience, and custodial infrastructure. 3iQ, which launched Canada's first publicly traded Bitcoin fund in 2020, contributes deep technical knowledge of blockchain markets. Mark Brisley of Dynamic Fund (Scotiabank's asset management arm) stated: "We have witnessed an evolution in the maturity of crypto assets, supported by growing investor demand, institutional adoption, and regulatory progress."
Bloomberg ETF analyst Eric Balchunas highlighted the significance: "Scotia Bank has launched an active crypto-picking ETF in Canada today. Notable because first bank up there to get in game and the fee is only 25bps, very low for active and Canada." The launch follows Canada's progressive regulatory environment, where the Canadian Securities Administrators (CSA) and provincial regulators have established frameworks for crypto investment funds.
This development lowers technical barriers for mainstream investors who can now access multiple cryptocurrencies through familiar brokerage accounts without managing private keys or navigating crypto exchanges. The inclusion of Solana and XRP alongside Bitcoin and Ethereum signals regulatory comfort with altcoins and could influence their liquidity and perceived legitimacy.
Canada has been actively participating in crypto markets, with $34 million in inflows into crypto products recently and $142 million year-to-date. The country ranks third globally in crypto assets under management with $4.9 billion, trailing only the U.S. and Germany.
