Two bitcoin exchange-traded funds (ETFs) have been approved in Canada. Evolve Bitcoin ETF has become the second bitcoin ETF to get approval by Canadaâ€™s securities regulator. The first approved bitcoin ETF starts trading Thursday. Some believe that the approval of bitcoin ETFs in Canada improves the chances of one being approved by the U.S. Securities and Exchange Commission (SEC).
Two North American Bitcoin ETFs Approved
North America now has two approved bitcoin exchange-traded funds. Evolve Funds Group Inc. announced Tuesday that it has been cleared to launch a bitcoin ETF, becoming the second approved bitcoin ETF in North America. With $1.7 billion in assets under management, Evolve is one of Canadaâ€™s fastest-growing ETF providers.
The first approved bitcoin ETF in North America was cleared to launch last week by the Ontario Securities Commission. Purpose Bitcoin ETF will begin trading Thursday on the Toronto Stock Exchange.
Evolve Bitcoin ETF will also trade on the Toronto Stock Exchange (TSX), subject to the exchangeâ€™s approval. It will be â€œone of the worldâ€™s first physically settled bitcoin ETFs,â€ the company described, adding that there will be two offerings: unhedged ETF units (ticker: EBIT) and USD unhedged units (ticker: EBIT.U).
Raj Lala, Evolve ETFsâ€™ president and CEO, commented:
Evolve Bitcoin ETF will provide investors with exposure to the daily price movements of the U.S. dollar price of bitcoin, the company detailed. â€œThe ETF will not seek exposure through derivatives or futures contracts and will be backed directly by physically settled bitcoin holdings.â€
Elliot Johnson, chief investment officer and chief operating officer of Evolve ETFs, explained: â€œEBIT will directly own bitcoin on the bitcoin blockchain in a cold wallet. We are very pleased to be working with best-in-class cryptocurrency experts including, Gemini Trust Company, CF Benchmarks, Cidel Trust Company, and CIBC Mellon Global Services.â€
The crypto community applauds the Canadian regulator for continuing to approve bitcoin ETFs. Some believe that the U.S. SEC will follow suit and approve a bitcoin ETF this year. Among them is Twitter user â€œMags,â€ who believes that two approved bitcoin ETFs in Canada â€œraise the likelihood of a U.S. ETF launching in 2021.â€
The user added that â€œMost (if not all) of the SECâ€™s prior concerns have been addressed,â€ emphasizing that government officials and regulators â€œlook to competing jurisdictions, particularly with respect to innovation â€“ the precedent has been set.â€ Several bitcoin ETF proposals have been filed with the U.S. SEC.
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