Tech News

The launch of the world’s first Bitcoin exchange ETF

Pinterest LinkedIn Tumblr

Canada’s main securities regulator authorized the launch of the world’s first Bitcoin Exchange ETF, providing investors with greater access to the cryptocurrency that has sparked an explosion of interest in trading.

The ETF is a basket of securities that are traded on the stock exchange, just like stocks. The price of ETF shares fluctuates throughout the day as the ETF is bought and sold.

The Ontario Securities Commission (OSC) has approved the launch of the Purpose Bitcoin ETF, it said mentioned Purpose Investments Corporation in a statement.

The approval is confirmed by the Ontario Securities Commission in a separate statement to Reuters, and the Purpose Bitcoin ETF is trading on the Toronto Stock Exchange under the symbol BTCC.

Purpose Investments said: The Bitcoin Exchange ETF will be the first in the world to invest directly in actually stable Bitcoin, not derivatives, giving investors easy and efficient access to the asset class originating from the cryptocurrency.

Investors were able to trade Bitcoin using futures contracts on the CME derivatives exchange, and they could also buy closed investment funds, such as the Bitcoin Fund on the Toronto Stock Exchange.

Arthur Salzer, chief executive of Northland Wealth Management, said: An ETF could offer some advantages to investors, such as buying with a net asset value.

“I think the Ontario Securities Commission is doing the right thing by allowing an ETF, as it gets rid of some of the negatives of existing funds,” Salzer added.

Bitcoin hit a record high of $ 48,975 on Friday, has gained about 63 percent so far this year, and has risen nearly 1,130 percent since mid-March 2020.

Tesla revealed on Monday that it had bought $ 1.5 billion worth of cryptocurrency and will soon accept it as a form of payment for its cars, while the cryptocurrency is gaining acceptance among major financial firms.

Eight companies in the United States have tried since 2013 to set up a Bitcoin ETF, but were unsuccessful.

Among the issues the SEC appears to be focusing on is the potential for market manipulation and the audit process that verifies that the fund is holding its alleged assets.

Analysts said: Some expect the Ontario Securities Commission’s approval to pave the way for US approval in the near term, but we do expect the new SEC leadership to take their time to review some of the new filings.

Have an article/sponsored post to share? Whatsapp: +2348129656985.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Pin It