North America’s first Bitcoin exchange-traded fund (ETF) has been approved for issuance in Canada. Purpose Bitcoin ETF is another mutual fund that is expected to be listed and traded on the Toronto Stock Exchange. With this approval, the United States lags behind Canada in approving Bitcoin ETFs.
North America’s first approved Bitcoin ETF
The Ontario Securities Commission approved a Bitcoin exchange-traded fund (ETF) called the Target Bitcoin ETF on Thursday. The fund’s documents describe “the ETF is an alternative mutual fund”, “invest and hold most of its assets, and hold the digital currency bitcoin for a long time.”
Investment Investments Inc., a fund manager, confirmed on Thursday that the Canadian securities regulator has approved the launch of a target Bitcoin ETF, which the company said is “the world’s first directly managed Bitcoin ETF.” Purpose Investments is an asset management company with more than $10 billion in assets under management. Details on its website. Company Profile:
The ETF will be the world’s first fund that directly invests in physical settlement of bitcoin instead of derivatives, so that investors can easily and efficiently access emerging cryptocurrency asset classes without having to undertake self-custodial in digital wallets risk.
The application added that the target Bitcoin ETF has been conditionally approved for listing, can be traded on the Toronto Stock Exchange (TSX), and will be “continuously available.” Investors can buy and sell these Bitcoin ETF units on TSX through their registered broker or dealer.
The fund provides an unlimited number of ETF currency hedging units denominated in Canadian dollars (stock code BTCC), ETF non-currency hedging units denominated in Canadian dollars (code BTCC.B) and ETF non-currency hedging units denominated in U.S. dollars ( Stock code BTCC.U).
Purpose Investment Company explained that the fund’s Bitcoin holdings are in cold storage, Gemini Trust Company LLC is the sub-custodian, and CIBC Mellon Global Securities Services is the fund manager.
The crypto community’s reaction
Many people in the crypto community were ecstatic to hear about the approval of this Bitcoin ETF. Marc van der Chijs, a partner at Synaptic Ventures, tweeted: “This is Canada’s first Bitcoin ETF. It’s incredible, it’s happening.”
The profile of Twitter user Mags stated that she had helped launch 3iq’s Bitcoin fund on TSX. She explained:
The Bitcoin ETF is different from other “closed-end” Bitcoin funds on Grayscale’s GBTC and TSX (3iq’s QBTC and CI Galaxy’s BTCG.U). ETF issued units continuously. This should help to make the ratio of the premium of these fund/trust transactions to the NAV (due to the second requirement of the finite unit).
In addition, she pointed out: “In Canada, the “only” way to deposit Bitcoin into our RRSP, TFSA and RESP accounts is to trade through TSX-listed Bitcoin funds, which will soon be used to trade ETFs. We are in TFSA (Win BTC) to get tax-free income…The U.S. has tax preferential accounts, such as IRA or 401k, and ETFs are eligible.”
Gabor Gurbacs, digital asset strategist and director of Vaneck and MVIS, wrote: His company submitted a Bitcoin ETF proposal to the US Securities and Exchange Commission (SEC).
Congratulations to Canadian regulators for approving Bitcoin ETF products. This is a very wise move, very useful for the market, investors and capital formation. At the same time, I feel very sad to see the decline in the United States lagging far behind Bitcoin in general ETP approval and digital asset business.
Do you think the US Securities and Exchange Commission will follow the example of Canadian regulators and approve the Bitcoin ETF soon? Let us know in the comments section below.
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