According to PANews news on July 7, the Canadian Securities Administration (CSA) recently issued guidelines aimed at helping fund managers comply with the legal requirements of investment funds holding encrypted assets. The document defends the existence of Canadian crypto ETFs, emphasizing that ETFs have the necessary tools to hedge against price volatility of specific crypto assets. The CSA named the bitcoin and ethereum markets as the best to support public crypto asset funds without compromising investor protection. It also places limits on the proportion of "illiquid assets" in a fund.

Regulators want investment funds to determine for themselves (after appropriate due diligence) whether the cryptoassets they intend to invest in are securities or derivatives. It also reminds investment managers that they are prohibited from lending non-securities assets. The document also lays out “minimum expectations” for crypto asset custody. These include primary storage in cold wallets, asset segregation visible on the blockchain, corporate crime insurance, and reporting to fund auditors. Another issue that was mentioned was cryptocurrency staking. The CSA confirmed that it does not prohibit staking per se, but wants fund managers to be vigilant that liquid crypto assets may become "illiquid" during the staking process - they should still abide by the "illiquid" limit.