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The first-ever BTC ETF in Canada has just been approved and it will debut on the Toronto Stock Exchange where it can be used for retirement and education savings accounts so let’s read more about it in today’s BTC news.
The US Securities regulators declined multiple times to approve a Bitcoin ETF but things are going smoothly in Canada. Companies in America tried and failed to obtain a Bitcoin ETF approval via the US Securities and Exchange Commission but the first-ever BTC ETF was approved in Canada. An ETF is akin to a mutual fund which is tracked directly and given a selection of securities but they are also listed on exchanges and traded like stocks. The Purpose Bitcoin ETF will trade on the Toronto Stock exchange using the BTCC.U symbol and the fund will purchase only BTC so investors can purchase in with either US dollars and Canadian dollars.
A #BitcoinETF is different from @Grayscale‘s $GBTC & other *closed-end* #Bitcoin funds on the @tsx_tsxv (3iQs $QBTC & CI Galaxy’s $BTCG.U)
ETFs issue units on a continuous basis. This should help w/ the premiums these Funds/Trusts trade at vs NAV (due 2 demand for limited units) https://t.co/ijMmJTLBca
— MAGS 🟧 (@Crypto_Mags) February 12, 2021
Canadian regulators decided to approve a Bitcoin Fund from 3iQb back in 2019 and 2020 for the Ether Fund as well. The funds allowed investors to purchase shares in both BTC And ETH but they couldn’t just hop in or out as there’s a limited time period in which you can buy. The $180 million Bitcoin Trust landed on the Toronto Stock Exchange back at the start of this year and trusts are quite different from ETFs because they provide exposure to the asset but they are also private and less liquid. Magdalena Gronowska who helped with the 3iQ BTC Fund launch said:
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“This is great news for investors. It allows for more options for retail and institutional investors to allocate to bitcoin, without the premium of closed end funds like Grayscale’s or 3iQ’s—an ETF is a vehicle that’s eligible for registered accounts.”
Gronowska said that this could mean ETFs will get incorporated in Canada’s tax-favored educational and retirement savings accounts which are equivalent to IRAs and 529s in the US. Other companies also filed a prospectus for Bitcoin ETF in the past month and two are already awaiting approval. A few US-based ETFs were rejected by the American securities regulators like the offerings from VanECK and Wilshire Phoenix. With Bitcoin having trouble breaking through the regulatory hurdles in North America, a new crypto ETF debuted in Bermuda earlier this week.
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