CSA Publishes Guidance On Public Crypto Funds – What Fund Managers Need To Know

The number and size of public investment funds in Canada that hold crypto assets (Public Crypto Asset Funds) has grown rapidly since the first Public Crypto Asset Fund was launched in Canada in 2020. On July 6, 2023, the Canadian Securities Administrators (CSA) published CSA Staff Notice 81-336 Guidance on Crypto Asset Investment Funds that are Reporting Issuers (the Staff Notice) to provide guidance to fund managers regarding the operation of Public Crypto Asset Funds. The Staff Notice addresses a number of securities law issues and outlines a number of the CSA's expectations. In particular, the Staff Notice addresses:

• Market and other characteristics of crypto assets that could impact their viability as investments for Public Crypto Asset Funds;