Scotiabank Launches Multi-crypto ETF With 3iQ Partnership

Canada’s investment landscape is expanding again as Bank of Nova Scotia and digital asset manager 3iQ Corp introduce a new multi-cryptocurrency exchange-traded fund (ETF). 

A New Step in Institutional Crypto Investing

The launch is designed to provide diversified exposure to several major digital assets through a single regulated investment vehicle, which signals growing institutional involvement in the country’s digital asset ecosystem.

The newly introduced ETF will track multiple major cryptocurrencies rather than focusing on a single asset such as Bitcoin (BTC) or Ethereum (ETH). According to details released by Dynamic Funds, the Dynamic Active Multi-Crypto ETF will trade across several major digital assets, including large-cap cryptocurrencies that dominate global market capitalisation.

Head of Dynamic, Mark Brisley, said,

“We have witnessed an evolution in the maturity of crypto assets, supported by growing investor demand, institutional adoption and regulatory progress.”

The collaboration aims to simplify access for investors who prefer diversified exposure without managing separate crypto holdings. Investors can gain access through traditional brokerage accounts, similar to how equity or commodity ETFs are purchased and traded.

For 3iQ, the partnership adds another institutional relationship to its growing lineup. The firm previously launched some of the first publicly traded crypto funds and  ETFs in Canada and has built a track record managing regulated digital-asset products.

Institutional Momentum Behind the Launch

The partnership also highlights a continued convergence between traditional finance and the digital asset sector. Dynamic highlighted the reduction of the fee from 0.45% to 0.25% until March 1 2027.

Major financial institutions have increasingly shown interest in crypto exposure through regulated investment products. ETFs have become preferred because they provide a familiar investment format that trades on financial infrastructure, including custody, compliance, and portfolio management systems used by asset managers and pension funds.

Canada has historically been an early adopter of crypto ETFs compared with many other jurisdictions. In 2021, the country was among the first to approve spot Bitcoin ETFs, attracting both retail and institutional capital.

By launching a diversified crypto ETF, Scotiabank and 3iQ are responding to a growing demand among professional investors for diversified digital asset exposure.  Rather than focusing on a single cryptocurrency, diversified funds allow institutions to distribute risk across several assets.

Data Points Highlighting Crypto ETF Activity

Recent data from the Canadian ETF market shows continued institutional interest in digital assets and investment vehicles that simplify access:

• Global crypto market capitalisation has fluctuated between $1 trillion and $2 trillion in recent years, reflecting sustained investor activity.
• Digital asset investment products collectively manage tens of billions of dollars in assets under management (AUM) across ETFs, trusts, and exchange-traded notes.
• Canada remains one of the largest markets for crypto ETFs, with several funds collectively attracting billions in investor inflows since their launch in 2021.
• Institutional adoption has accelerated as pension funds, asset managers, and banks often favour ETF structures because they offer regulated custody and transparent pricing.

These figures illustrate why financial institutions are increasingly exploring crypto-linked investment products. This pattern indicates that ETFs, in particular, have become a preferred structure due to transparency, liquidity, and regulatory oversight.

Canada approved spot crypto ETFs earlier than the United States (US) and later expanded the market to include funds tracking Bitcoin, Ethereum, and other digital assets. These products are listed on exchanges such as the Toronto Stock Exchange and Cboe Canada, allowing investors to gain regulated exposure to major cryptocurrencies.