The first publicly-traded Bitcoin ETF in North America has been granted approval by Canada’s financial regulator.
According to a decision letter published by the Ontario Securities Commission on Thursday, asset manager Purpose Investments has gained approval to launch the first ever Bitcoin ETF, which will be listed on the Toronto Stock Exchange. According to a fact sheet published by Purpose Investments, the Bitcoin ETF will mirror the performance of Bitcoin’s price excluding fees and expenses. Further, the fund will be physically backed by the coin itself.
The fund’s expenses are comprised of trading and operating costs, as well as an annual management fee of 1% of the value of Bitcoin.
So far, there are approximately four more active filings for a Bitcoin ETF that have yet to get the go-ahead from Canada’s financial regulator, according to Bloomberg. The firms that have filed thus far include Accelerate Financial, Arxnovum Investments, Evolve Funds, and Horizons ETFs. Although there are currently a number of close-ended Bitcoin funds trading on the TSX, they are not the same as an ETF because units can only be issued via an initial public offering or during a reopening.
Canada has a long record of being at the forefront of approving new kinds of ETFs, especially compared to the US. In fact, Canada was responsible for launching the first ever ETF, and was also ahead of the US in releasing cannabis-related funds. According to industry experts, Canada’s Bitcoin ETF sends a positive signal to companies that are looking to offer their own ETFs on US exchanges.
Information for this briefing was found via Sedar and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.