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Instead of:

• investing in one of the 29 non-inverse or short cryptocurrency futures or blockchain technology ETFs, mutual funds, and trusts trading on Canadian and American stock exchanges (see here), excluding the 2 ETFs presented below or
• establishing a digital wallet to take custody of the coins themselves,

consider:

• investing in one of the two (2) ETFs highlighted below that:
  • almost exclusively own the stocks of companies that use or develop blockchain technology rather than focusing narrowly on tracking the price of individual cryptocurrencies and that
  • continue to dramatically outperform the sector.

Below are the details of those two ETFs including their performances so far in November (as of November 25th), and in comparison to Bitcoin and Ethereum during the same time periods:

1. First Trust Indxx Innovative Transaction & Process ETF (LEGR): UP 9.2% since the end of October
   • LEGR is a passively managed fund launched in January 2018. It tracks the performance of the Indxx Blockchain Index.
   • It only invest in companies that have devoted real resources to actually using blockchain technology - either by currently deploying blockchain technology or actively developing it and, as such, excludes companies that are merely exploring this new technology.
   • It is highly diversified with 102 holdings, with no single holding weighted at more than 1.6% of net assets.
   • It concentrates on the following sectors: Financials (36%), Information Technology (32%), Communication Services (9%), Consumer Discretionary (8%) and Industrials (7%).
   • Its top ten holdings, in descending order, are: S&P SE, Infineon Technologies, Honeywell, AT&T, NVIDIA, Samsung, Engie, IBM, Micron Technology and Emirates Telecommunications.
   • Its top country exposures are: USA (36%), China (9%), Germany (9%), India (8%), France (6%), U.K. (5%) and Switzerland (3%)
   • It has an expense ratio of 0.65%
   • It has a dividend yield of 3.81%
   • It has Assets Under Management (AUM) of US$112.3M
   • Go here for a chart of the most recent pricing.
2. Simplify US Equity PLUS GBTC ETF (SPBC): DOWN 0.4% since the end of October
   • SPBC targets a 100% investment in U.S. equities while simultaneously providing a 10% exposure to Bitcoin via the Grayscale Bitcoin Trust (GBTC)
   • It does not invest directly in bitcoin, bitcoin futures, or other cryptocurrencies and, as such, does not track the price movements of cryptocurrencies.
   • Its holdings are concentrated in just three areas, namely: iShares Core S&P 500 ETF: 86%; December S&P e -mini Futures contract: (15%); and Grayscale Bitcoin Trust (GBTC): 8%; Cash (-9%)
   • The ETF has an expense ratio of 0.73%
   • It has a dividend yield of 2.12%
   • It has Assets Under Management (AUM): US$47.8M
   • Go here for a chart of the most recent pricing.

Bitcoin and Ethereum Performances

In comparison to the performances of the above ETFs:

• Bitcoin is DOWN 19.7% since the end of October and
• Ethereum is DOWN 21.9 % since the end of October

Inverse and Short Cryptocurrency ETFs

Investors also have the option of going long Bitcoin through managed future ETFs as well as playing the other side and betting against the cryptocurrency with one of the following ETFs:

• Horizons BetaPro Inverse Bitcoin ETF (BITI.U)
  • It is designed to provide daily investment results through short investments in bitcoin futures that endeavor to correspond to the single inverse (opposite) performance of an index that replicates the returns generated over time through long notional investments in Bitcoin Futures.
  • It has a CUSIP number of 74347G291 (read about CUSIP numbers here)
  • Go here for chart of most recent pricing.
• ProShares Short Bitcoin Strategy ETF (BITI)
  • It was launched on June 21st, 2022, and is designed to provide inverse exposure to the daily return of bitcoin, minus fees and costs.
  • It trades in futures contracts listed on the Chicago Mercantile Exchange, rather in than the “physical” currency itself.
  • Go here for chart of most recent pricing.

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