Scotiabank and 3iQ Launch Multi-Crypto ETF Amid Growing Institutional Interest
By John Nada·Mar 4, 2026·6 min read
Scotiabank partners with 3iQ to launch a multi-crypto ETF, enhancing institutional adoption in Canada and offering exposure to major digital assets.
Scotiabank has launched a new cryptocurrency exchange-traded fund (ETF) in partnership with digital asset manager 3iQ, offering Canadian investors exposure to a diverse range of digital assets. The Dynamic Active Multi-Crypto ETF, which trades on Cboe Canada under the ticker DXMC, provides access to Bitcoin, Ether, Solana, and XRP, all at a competitive management fee of 0.25% until March 1, 2027.
This launch underscores the growing institutional adoption of cryptocurrency in Canada, a market that has already embraced spot Bitcoin ETFs years ahead of the United States. The move highlights Scotiabank's commitment to expanding its offerings in the digital asset space through its asset management arm, Dynamic Funds. Multi-asset crypto ETFs have gained traction as they allow investors to diversify their portfolios while mitigating the complexities of managing individual cryptocurrency holdings.
The Dynamic Active Multi-Crypto ETF is characterized as a liquid alternative fund, which adds to its appeal for investors looking for accessible ways to enter the crypto market. This fund not only provides direct exposure to major cryptocurrencies but also streamlines the investment process, eliminating the need for investors to individually buy and store each digital asset. As Bloomberg ETF analyst Eric Balchunas pointed out, the ETF is highly competitive from a fee perspective, with a reduction from 0.45% to 0.25% until March 1, 2027, making it an attractive option for both retail and institutional investors alike.
Canada has established itself as a leader in the crypto ETF space, with 3iQ previously launching one of the world’s first publicly traded spot Bitcoin funds in 2021. This proactive approach has allowed Canadian investors to gain regulated exposure to multiple cryptocurrencies, setting a precedent for other markets. The recent acquisition of 3iQ by Japanese exchange Coincheck for $111.84 million further demonstrates the increasing global interest in cryptocurrency assets and their management.
The implications of this launch are significant. With institutional players like Scotiabank entering the crypto ETF market, it could pave the way for broader acceptance and adoption of digital assets within traditional finance. As ETFs continue to evolve, they may become a crucial tool for investors seeking to navigate the complexities of the cryptocurrency landscape, ultimately driving greater liquidity and stability in the market.
The expansion of cryptocurrency products available to Canadian investors is noteworthy, especially in light of the U.S. regulatory environment, which has historically lagged behind Canada in approving crypto investment vehicles. The approval of nearly a dozen spot Bitcoin ETFs in early 2024 in the U.S. has reignited conversations about the potential for further developments in the crypto ETF space. However, Canada's head start in this sector has positioned it as a beacon for innovation and regulatory acceptance in the cryptocurrency domain.
As the market for digital assets continues to mature, the role of institutional players such as Scotiabank cannot be underestimated. Their entry signifies a growing recognition of cryptocurrency’s potential as a legitimate asset class. With the backing of established financial institutions, investor confidence in digital assets is likely to rise, facilitating broader market participation.
Moreover, Scotiabank's collaboration with 3iQ underscores the synergy between traditional financial institutions and innovative asset management firms in developing products that meet the evolving needs of investors. This partnership not only enhances the credibility of the ETF but also reinforces the idea that cryptocurrencies are becoming mainstream investment options.
The growing acceptance of crypto ETFs in Canada can also be seen as a response to investor demand for regulated products that provide exposure to the volatile cryptocurrency market. The ability to invest in a basket of digital assets through a single fund not only simplifies the investment process but also helps investors manage risk more effectively. This diversification is particularly important given the historical price fluctuations associated with individual cryptocurrencies.
3iQ's previous success with its Bitcoin fund, which quickly surpassed 1 billion Canadian dollars in assets under management, highlights the appetite for regulated crypto investment products in Canada. This success story has likely influenced Scotiabank's decision to enter the market with its own multi-crypto ETF, aiming to capture a share of the growing investor interest in digital assets.
Furthermore, the active management aspect of the Dynamic Active Multi-Crypto ETF distinguishes it from many of its competitors, which often follow a passive investment strategy. This active management approach allows for strategic asset allocation and rebalancing, enabling the fund to respond to market changes and capitalize on emerging trends within the cryptocurrency space.
The implications of this product extend beyond individual investors. Institutional adoption of cryptocurrency ETFs can lead to increased liquidity in the market, which is vital for the overall health of the digital assets ecosystem. As more institutional capital flows into the cryptocurrency space, it may contribute to greater price stability and reduced volatility, making digital assets more attractive to a wider range of investors.
In light of the recent global financial trends, the move by Scotiabank and 3iQ to launch a multi-crypto ETF could also be seen as a response to the growing sentiment among investors to diversify their portfolios in the face of economic uncertainty. As traditional markets experience fluctuations, cryptocurrencies have emerged as an alternative asset class that may offer protection against inflation and currency devaluation.
The strategic timing of this ETF launch is also crucial as it coincides with a period of renewed interest and investment in cryptocurrencies following the recent surge in Bitcoin and Ether prices. Such market conditions may provide a favorable backdrop for new investment products, potentially attracting a wave of new investors eager to participate in the crypto market.
As the cryptocurrency landscape continues to evolve, regulatory frameworks and market dynamics will play a critical role in shaping the future of crypto ETFs. Canada's regulatory environment has been relatively progressive, allowing for innovation while ensuring investor protection. This balance is essential for fostering a sustainable crypto market that can adapt to changing trends and investor needs.
The acquisition of 3iQ by Coincheck for $111.84 million further illustrates the growing global interest in the management of cryptocurrency assets. This acquisition not only signifies the value of 3iQ's expertise in the crypto space but also reflects the increasing importance of strategic partnerships in navigating the complexities of the digital asset market. As more traditional financial institutions seek to enter the cryptocurrency space, collaborations like these are likely to become more common.
In addition to the competitive fee structure and active management approach, the Dynamic Active Multi-Crypto ETF is positioned to attract a diverse range of investors, including those who may be hesitant to engage directly with cryptocurrencies. By offering a regulated investment vehicle, this ETF provides a safe and accessible entry point for investors who are cautious about the operational and security risks associated with holding digital assets directly.
As Scotiabank and 3iQ continue to innovate in the cryptocurrency space, it will be interesting to observe how this ETF performs in the coming months and what impact it may have on the broader crypto market. The success of this product could pave the way for additional financial products targeting the cryptocurrency sector, signaling a shift towards more comprehensive offerings for investors seeking exposure to digital assets.