The FTX collapse continues to impact a variety of financial services firms.
Purpose took a leadership position when it launched the world’s first direct bitcoin and ether ETFs. These are highly regulated funds with institutional custody, deep internal governance and security models, and carry no leverage.
Our crypto funds’ assets are custodied with Gemini in segregated cold storage wallets in the name of Purpose’s funds. These assets are never re-hypothecated or lent out.
Recently, Gemini paused withdrawals from their Earn program due to a temporary suspension of redemptions issued by Genesis, the lending partner of the Gemini Earn program.
This has no impact on Gemini’s institutional custody service. We continue to have access to our Funds’ assets and have seen no disruption to regular fund operations.
Gemini is licensed in New York as a Trust Company, and regulated under New York Banking Law, by the New York State Department of Financial Services. They are a full reserve platform.
The fiduciary and the legal relationship between Gemini and Purpose is such that in an unlikely event of a Gemini insolvency, Purpose’s crypto funds’ custodied assets are not held on Gemini's balance sheet but held in trust solely for the benefit of Purpose's funds.
We continue to actively monitor this situation and will ensure that our customers’ assets remain protected. Our ETFs remain the best way to access the long-term returns of crypto in a safe and secure manner.
—Purpose Investments
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