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 fundâ€™s filing describes that â€œThis ETF is an alternative mutual fundâ€ that â€œinvests in and holds substantially all of its assets in long-term holdings of the digital currency bitcoin.â€
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 â€œthe first direct custody bitcoin ETF in the world.â€ Purpose Investments is an asset management company with more than $10 billion in assets under management, its website details. The company described:
Purpose Bitcoin ETF has been conditionally approved to trade on the Toronto Stock Exchange (TSX), subject to listing requirements, and will be â€œoffered on a continuous basis,â€ 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 fundâ€™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 Communityâ€™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: â€œThe first bitcoin ETF and itâ€™s in Canada. Unbelievable, it is really happening.â€
Twitter user Mags, whose profile says she helped launch 3iqâ€™s bitcoin fund on TSX, explained:
In addition, she noted: â€œIn Canada, the â€˜onlyâ€™ 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) â€¦ The US has tax-advantaged accounts like IRAs or 401kâ€™s that an ETF would be eligible for.â€
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:
Do you think the U.S. SEC will follow Canadian regulatorsâ€™ example and approve a bitcoin ETF soon? Let us know in the comments section below.
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