Nine months after launching the world’s first Bitcoin exchange-traded fund, Purpose Investments is debuting three more. The ETFs all launch on the Toronto Stock Exchange today and aim to turn a common criticism of cryptocurrencies—volatility—into a reason to invest.

The Purpose Bitcoin Yield ETF and Purpose Ether Yield ETF will use derivatives to smooth out some of the ups and downs and provide investors with monthly distributions, in addition to long-term price appreciation. Meanwhile, the Purpose Crypto Opportunities ETF will be the world’s first actively-managed one, making use of cryptocurrency derivatives in addition to looking for arbitrage opportunities presented by the Bitcoin futures market and investing in crypto-related stocks. 

Purpose founder and chief executive Som Seif spoke with The Logic about the ETFs, cryptocurrency regulation and—yes—the metaverse.

On how to compete in an increasingly crowded market: “The same way we got here in the first place. One, we built one of the most efficient ways to own Bitcoin and Ether and we continue to execute on that. Two, continued innovation. These three products give people a unique way to gain exposure [to cryptocurrency]. While everyone else catches up to that, we’ll continue to innovate the next set of solutions.”

On the launch of a Bitcoin futures ETF and the ongoing wait for a physically backed one in the U.S.: “I continue to be surprised by the U.S. decision not to launch a real Bitcoin ETF. I don’t understand why. The whole idea is to create the best products on behalf of customers. Why do they continue to allow inferior products to be out there?”

On Canada vs. U.S. crypto regulation: “It’s a difference of action versus talk. Canada gets criticism for its fragmented regulatory system and that is a major problem. But when [one regulator] takes ownership, like the [Ontario Securities Commission], some things can happen in innovative ways. On the exchange side, they’re trying to bring everyone into the regulated world. I think that’s a positive, whereas the U.S. has been allowing regulatory arbitrage to occur pretty broadly. I think the regulators in Canada have just recognized that there are going to be people who want access to this space, whether we like it or not … I think they’ve done a really great job.”

On the metaverse investing trend: “The bigger picture trends that are happening broadly, I think, are very, very exciting. Do I think it’s going to be game changing for allocation of capital? Probably not. I would put this into the same realm as when psychedelics came along with ETFs. There are really exciting themes that are happening in technology that investors should have exposure to. I think the metaverse is not necessarily one.”