- Purpose Unlimited, a Canadian firm, offers a Bitcoin ETF that directly holds coins, a concept yet to be sanctioned by U.S. authorities.
- Purpose Unlimited’s CEO, Som Seif, suggests undisclosed plans for expansion into the U.S. market.
Innovation Beyond Borders: Purpose Unlimited’s Bold Financial Engineering
While the United States grapples with the regulation of cryptocurrency-based financial products, Canada’s Purpose Unlimited is revolutionizing the market with trailblazing financial offerings. The company’s offering roster includes a Bitcoin ETF that holds coins directly, an intriguing concept that has so far eluded U.S. authorities’ approval.
Founded in 2013 by Som Seif, Purpose Unlimited has grown significantly over the decade. It currently manages a portfolio of assets worth approximately $12.6 billion, besides another $4.6 billion administered for financial advisors in Canada. The firm competes valiantly with industry giants such as BlackRock, Vanguard, and Fidelity. Seif attributes the company’s success to the financial sector’s innate fragmentation, opening the door for smaller firms to excel.
Bucking the Trend: Bitcoin ETF and More
The Bitcoin ETF from Purpose Unlimited is a particular point of interest. Holding coins directly, this ETF offers a closer link between the investor and the cryptocurrency, eliminating the need for an intermediary layer of futures. It was approved by Canadian authorities in 2021 and was the first of its kind globally. Purpose Unlimited’s crypto ETFs collectively hold over $1 billion in assets. Seif proudly declares,
“That’s $1 billion that didn’t get caught up in FTX or some other scam.”
Among the other innovative offerings, Purpose Unlimited has an exchange-traded fund that holds bank deposits and options resembling shares of Amazon or Tesla but paying dividends. There’s also the Purpose Longevity, a lifetime annuity with a refund feature structured as a mutual fund, a novel concept in the financial industry.
Breaking into the American Market: A Future Plan?
For now, Seif’s innovations primarily cater to the Canadian market. However, his hints about undisclosed plans suggest the potential for an American expansion. For U.S. investors eager to explore these offerings, Fidelity Investments permits trades in Canadian ETFs. However, for most U.S. citizens, entry into such funds remains contingent on the U.S. Securities and Exchange Commission (SEC) relaxing its regulatory stance.
Seif’s audacious financial engineering, reflected in Purpose Unlimited’s varied offerings, has placed the firm as a major competitor in the investment landscape. For U.S. investors, this serves as an enticing glance into what might soon be available to them, contingent on the ever-evolving regulatory landscape.