Yesterday a document was published through which the approval of a Bitcoin exchange-traded fund, or Bitcoin ETF, which will be offered by Accelerate Financial, was announced.
Canada makes crypto market dream come true
For a long time the crypto community dreamed of the approval of a Bitcoin ETF as many experts saw it as a catalyst for the price of the leading crypto.
In fact, there were multiple occasions when the SEC rejected a proposal for a Bitcoin ETF and with it, the price of the leading crypto collapsed.
Now, amid a wave of massive Bitcoin adoption, the Ontario Securities Commission (OSC) has decided to approve the proposal for a Bitcoin ETF by investment firm Accelerate Financial.
Purpose Bitcoin ETF
Thus, the approval covers the following territories: British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut.
In this sense, Purpose Bitcoin ETF will be an alternative mutual fund that «... invests and holds substantially all of its assets in long-term holdings of the digital currency Bitcoin ». In addition, the fund will offer units denominated in both US dollars and Canadian dollars with a management fee of 0.7%.
For its part, Cidel Trust Company, a subsidiary of Cidel Bank Canada, is designated as custodian of the fund. While the Winklevoss twins’ crypto exchange Gemini will act as sub-custodian of the fund and Ernst & Young is the fund’s auditor.
With approval, the ETF may be listed on the Toronto Stock Exchange (TSX). It is worth remembering that an ETF contains a basket of investments, much like a mutual fund, but is publicly traded like stocks.
Also, let’s remember that BTC ETFs are considered as “high risk”. However, despite this, Bitcoins ETFs are already a reality. Therefore, we will most likely start to see new approvals in the coming months.
In fact, according to CoinDesk, Eric Balchunas, an analyst at Bloomberg, believes the fund in Canada is a “good sign” for a US-approved Bitcoin ETF.
We want to know your opinion! Would you invest in a BTC ETF? How do you think this will impact the crypto market?