Institutional crypto adoption in Canada has taken a clear step forward as Scotiabank’s asset-management arm, Dynamic Fund, launches a new vehicle aimed at giving Canadian investors streamlined exposure to major cryptocurrencies.
What’s new
- Dynamic Fund’s offering provides access to a basket of crypto assets including Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Ripple (XRP). The fund is positioned to deliver long-term capital appreciation through diversified crypto exposure.
- Mark Brisley, head of Dynamic, said the move reflects a maturation of crypto markets, driven by rising investor demand, institutional adoption and regulatory progress.
Why it matters
- Dynamic Fund is part of the Bank of Nova Scotia (Scotiabank), marking one of the first instances of a major Canadian bank directly launching an actively managed crypto ETF-style product. Canadian brokerage firms and banks have been distributing crypto ETFs since 2021, but this represents a more direct, bank-led entry into active crypto management.
- Bloomberg ETF analyst Eric Balchunas highlighted the significance and cost-efficiency of the launch: “Scotia Bank has launched an active crypto-picking ETF in Canada today. Notable because first bank up there to get in game and the fee is only 25bps, very low for active and Canada.”
Broader context
- The move fits into a wider global trend of traditional financial institutions increasing crypto exposure. In the U.S., for example, Morgan Stanley recently entered the race around spot Bitcoin ETFs.
- Canada remains an active market for crypto investment products. CoinShares data shows Canada pulled in $34 million of inflows during a recent period of geopolitical tension, bringing its year-to-date flows to $142 million. Canada ranks third globally for crypto assets under management, with about $4.9 billion AUM behind only the U.S. and Germany.
Regulatory and tax backdrop
- Canada treats crypto as property for tax purposes; only 50% of capital gains are taxable under Canadian rules (i.e., half the gain is included in taxable income). While Canada is close behind the U.S. on stablecoin legislation, regulators are actively pursuing clearer rules for the stablecoin sector as the market matures.
Bottom line
Scotiabank’s Dynamic Fund launch signals growing institutional confidence and product innovation in Canada’s crypto market — a development that could broaden investor access while underscoring the ongoing interplay between regulation, institutional adoption and retail demand.
Disclaimer: This article is informational and not investment advice. Cryptocurrency trading is high-risk; readers should conduct their own research before making investment decisions. Sources: Scotiabank/Dynamic Fund statements, Bloomberg, CoinShares. © 2026 AMBCrypto
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