Headline: Scotiabank’s Dynamic Fund jumps into crypto with low-fee active ETF — a sign of growing institutional momentum in Canada
Lead: Institutional interest in crypto is heating up in Canada as Dynamic Fund — the asset-management arm of the Bank of Nova Scotia (Scotiabank) — launches a simplified route for Canadian investors to gain exposure to multiple digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Ripple (XRP). The move underscores broader trends of bank-led entry into crypto markets and a maturing Canadian crypto ecosystem.
What happened
- Dynamic Fund has rolled out an active crypto product aimed at long-term capital appreciation by holding a basket of major crypto assets.
- Scotiabank’s involvement is notable because it marks a major bank directly offering an actively managed crypto ETF-style vehicle in Canada.
- Bloomberg ETF analyst Eric Balchunas highlighted the product as “notable because first bank up there to get in game and the fee is only 25bps, very low for active and Canada.”
Why it matters
- Bank participation signals growing institutional confidence and a more mainstream path for investors to access crypto through established financial providers.
- Active crypto products from major banks differ from passive, index-tracking ETFs by giving managers discretion over asset allocation — and a 25 basis-point fee is unusually low for active management, potentially pressuring competitors on pricing.
Market context
- Canada has been an early adopter of crypto ETFs, with brokerages and banks offering ETF access since 2021. Scotiabank’s new product takes that a step further by putting a major bank directly in the active crypto management arena.
- The launch mirrors global moves by big banks into crypto: in the U.S., for example, Morgan Stanley has entered the spot Bitcoin ETF race.
Flows and market size
- According to CoinShares, Canada recorded $34 million in inflows into crypto products during the weekend of Iran-related market tension, bringing year-to-date inflows to $142 million.
- Canada ranks third globally by crypto assets under management (AUM), behind the U.S. and Germany, with roughly $4.9 billion in AUM, per CoinShares.
Regulatory and tax backdrop
- Canada treats crypto as property for tax purposes; only 50% of capital gains are taxable as part of the capital gains regime.
- While Canada has lagged the U.S. on stablecoin legislation, regulators are actively pushing for clearer rules for the stablecoin sector — part of the broader effort to mature the domestic crypto framework.
Comment from Dynamic
- Mark Brisley, head of Dynamic, summarized the rationale: “We have witnessed an evolution in the maturity of crypto assets, supported by growing investor demand, institutional adoption, and regulatory progress.”
Bottom line
Scotiabank’s Dynamic Fund entry is another sign that crypto is moving deeper into mainstream finance in Canada. For investors, bank-backed, low-fee active products could mean easier access and tighter fee competition — but regulatory clarity and risk awareness remain essential.
Disclaimer: AMBCrypto’s content is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making investment decisions. © 2026 AMBCrypto
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