Fun

Bitcoin ETF Approved: First North American Bitcoin ETF Set to Trade on Toronto Stock Exchange

News Feed - 2021-02-13 07:02:05

Bitcoin ETF Approved: First North American Bitcoin ETF Set to Trade on Toronto Stock Exchange


The first bitcoin exchange-traded fund (ETF) in North America has been approved to launch in Canada. Purpose Bitcoin ETF, an alternative mutual fund, is expected to list and trade on the Toronto Stock Exchange. With this approval, the U.S. has fallen behind Canada in approving a bitcoin ETF. First Bitcoin ETF Approved in North America


The Ontario Securities Commission approved a bitcoin exchange-traded fund (ETF) called Purpose Bitcoin ETF on Thursday. The fund’s filing describes that “This ETF is an alternative mutual fund” that “invests in and holds substantially all of its assets in long-term holdings of the digital currency bitcoin.”


The fund manager, Purpose Investments Inc., confirmed Thursday that it has been cleared by Canadian securities regulators to launch Purpose Bitcoin ETF, which the company says is “the first direct custody bitcoin ETF in the world.” Purpose Investments is an asset management company with more than $10 billion in assets under management, its website details. The company described: The ETF will be the first in the world to invest directly in physically settled bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency without the associated risk of self-custody within a digital wallet.


Purpose Bitcoin ETF has been conditionally approved to trade on the Toronto Stock Exchange (TSX), subject to listing requirements, and will be “offered on a continuous basis,” the filing adds. Investors can buy and sell these bitcoin ETF units on the TSX through registered brokers or dealers where they reside.


The fund is offering an unlimited number of Canadian dollar-denominated ETF currency-hedged units (ticker symbol BTCC), Canadian dollar-denominated ETF non-currency hedged units (ticker symbol BTCC.B), and U.S. dollar-denominated ETF non-currency hedged units (ticker symbol BTCC.U).


Purpose Investments explained that the fund’s bitcoin holdings are kept in cold storage, with Gemini Trust Company LLC as sub-custodian and CIBC Mellon Global Securities Services Company as fund administrator. Crypto Community’s Reactions


Many people in the crypto community are ecstatic to hear about this bitcoin ETF approval. Synaptic Ventures partner Marc van der Chijs tweeted: “The first bitcoin ETF and it’s in Canada. Unbelievable, it is really happening.”


Twitter user Mags, whose profile says she helped launch 3iq’s bitcoin fund on TSX, explained: A bitcoin ETF is different from Grayscale’s GBTC and other ‘closed-end’ bitcoin funds on the TSX (3iq’s QBTC and CI Galaxy’s BTCG.U). ETFs issue units on a continuous basis. This should help w/ the premiums these funds/trusts trade at vs NAV (due 2 demand for limited units).


In addition, she noted: “In Canada, the ‘only’ way to hold bitcoin in our RRSP, TFSA, & RESP accounts is via the TSX listed bitcoin funds & this soon to trade ETF. We have tax free gains in a TFSA (a win wrt BTC) … The US has tax-advantaged accounts like IRAs or 401k’s that an ETF would be eligible for.”



Gabor Gurbacs, the digital asset strategist and director at Vaneck and MVIS, whose firm has a bitcoin ETF proposal filed with the U.S. Securities and Exchange Commission (SEC), wrote: Congratulations to Canadian regulators for approving bitcoin ETF products. Very sensible move and it’s great for markets, investors & capital formation. At the same time, I am sad to see the U.S. falling far behind in bitcoin ETP approval & digital assets business in general.


Do you think the U.S. SEC will follow Canadian regulators’ example and approve a bitcoin ETF soon? Let us know in the comments section below. Miami Going Full Bitcoin: City Supports Efforts to Hold Bitcoin in Treasury, Allow Tax Payments in BTC REGULATION | 4 hours ago US Treasury Secretary Janet Yellen Says "the Misuse of Cryptocurrencies Is a Growing Problem" REGULATION | 6 hours ago Tags in this story bitcoin etf, bitcoin etf approved, bitcoin etf canada, bitcoin exchange traded fund, canada approves bitcoin etf, Toronto Stock Exchange, TSX


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

World’s Largest ASIC Producer Bitmain Slashes Antminer Bitcoin Mining Rig Prices
World’s Largest ASIC Producer Bitmain Slashes Antminer Bitcoin Mining Rig Prices The world’s largest producer of application-specific integrated circuit (ASIC) bitcoin min
Lawsuit Claims US Labor Department’s Crypto Guidance Is Unlawful
Lawsuit Claims US Labor Department"s Crypto Guidance Is Unlawful The U.S. Department of Labor has been sued by a 401(k) plan administrator over its cryptocurrency guidance. “
Global manhunt underway for JPEX promoter ‘Coin Young Master’
Tom Mitchelhill7 hours agoGlobal manhunt underway for JPEX promoter ‘Coin Young Master’Interpol has issued red notices for Wong Ching-kit and his accomplice, Mok Tsun-ting, on charges of fraud, theft, and money laund
ShapeShift settles SEC securities charges dating to its pre-DAO days
Derek Andersen5 hours agoShapeShift settles SEC securities charges dating to its pre-DAO daysShapeShift lived up to its name with a 2021 structural transformation, but it didn’t escape the wrath of the SEC.885 Total vi
ADALend Is Building a Cardano Native, Scalable and Decentralized Lending Protocol
ADALend Is Building a Cardano Native, Scalable and Decentralized Lending Protocol sponsored ADAlend.finance , a protocol that is bringing decentralized lending to the Cardano blockc
Biggest Movers: AXS Jumps Over 20%, as MATIC Falls to 13-Month Low
Biggest Movers: AXS Jumps Over 20%, as MATIC Falls to 13-Month Low Despite the majority of tokens trading in red on Thursday, AXS was up by over 20% in today’s session. Whil
Bank of Spain Approves Its First VASP License
Bank of Spain Approves Its First VASP License The Bank of Spain, the central bank of the country, has recognized the first cryptocurrency platform that will be able to operate and
Amaka Nwaokocha16 minutes agoNigeria’s Patricia Technologies relieved as arrest made in crypto wallet heistThe Nigerian Police Force spokesperson said in the statement that Ambassador Wilfred Bonse has been arrested co
XRP Rich List: Top 20 Wallets Control Over 50% Of Supply, But Who’s Number 1?
Este artículo también está disponible en español. XRP, the native cryptocurrency of the Ripple network, has seen its price grow massively in recent months,allowing it to
Bitcoin of America Earns 2021 Great Place to Work Certification
Bitcoin of America Earns 2021 Great Place to Work Certification press release PRESS RELEASE. Bitcoin of America is one of the fastest growing BTM operators worldw
SEC Chair Gary Gensler Says Crypto Will ‘Not End Well’ if It Stays Outside Regulations
SEC Chair Gary Gensler Says Crypto Will "Not End Well" if It Stays Outside Regulations The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, says that cr
Tom Mitchelhill8 hours agoDo Kwon says SEC’s extradition request is impossibleThe Terraform Labs co-founder has pushed back against the SEC’s request to question him in the United States.4095 Total views18 Total shar