Canada’s securities regulators have since the past month gone ahead of the US to approve about three bitcoin exchange-traded funds (ETFs) in North America. Upon approval, the three bitcoin exchange-traded funds (ETFs) are currently trading on the Toronto Stock Exchange.
Canada’s securities regulators began its bitcoin exchange-traded funds (ETFs) approval with Purpose Investment and since then has approved Evolve bitcoin exchange-traded funds (ETFs) and recently CI Galaxy Bitcoin ETF. backed by Mike Novogratz’s Galaxy Digital. The former approved ETFs began trading on the Toronto Stock Exchange (TSX) close to a month ago while the most recent began trading on TSK Tuesday.
Purpose Investment Bitcoin ETFs
Purpose Investments announced on the 2nd of February it has been cleared by Canadian securities regulators to launch a Bitcoin ETF. its approval makes it the first direct custody Bitcoin ETF in the world. It was finally launched on the 18th of February to offer physical bitcoin holdings.
Similar to other ETFs, Purpose Investment Bitcoin ETF is designed to provide investors with exposure to the leading cryptocurrency, Bitcoin, by investing directly in physically settled Bitcoin, not derivatives. Purpose Bitcoin ETF is similar to physically-backed gold or silver products. It will always be backed directly by physically settled Bitcoin holdings.
According to Som Seif, the founder, and CEO of Purpose Investments;
“Bitcoin has been gaining popularity among individual and institutional investors for years now, however, it remains a difficult asset to gain efficient and secure exposure to,”
He added that;
“Purpose Bitcoin ETF will change the landscape for investors by giving them a simple, efficient and affordable way to directly access the cryptocurrency.”
Regarding its storage, Purpose Investments is working with Gemini Trust Company, LLC as sub-custodian and CIBC Mellon Global Securities Services Company as fund administrator to provide investors with confidence regarding the safe and effective purchase, settlement, custody of Bitcoin, and administration of the ETF.
Also, the firm is working closely with the Ontario Securities Commission (OSC) through a confidential filing process. According to Seif;
“The OSC was a crucial working partner in the launch of Purpose Bitcoin ETF and we are grateful for their willingness to work with us through this process. Their cooperation and guidance made it possible for us to move forward on getting this novel ETF into the hands of investors,”
The Purpose Investment’s ETF are both Canadian dollar-denominated ETF non-currency hedged units and U.S. dollar-denominated ETF non-currency hedged units and are both trading on the Toronto Stock Exchange under the ticker BTCC.B and BTCC.U, respectively.
Evolve Bitcoin ETF
Evolve Bitcoin ETF is the second Canada-approved Bitcoin ETF after Purpose Investment. Evolve ETFs is a thematic investment firm and one of the country’s fastest-growing ETF providers,
Similar to Purpose’s Bitcoin ETF, which is designed to provide investors with exposure to the cryptocurrency, on the TSX, Evolve Bitcoin ETF will be made available to Canadian investors through both unhedged ETF units (EBIT) and US dollar unhedged units (EBIT.U).
According to Raj Lala, the President, and CEO of Evolve ETF, “The Bitcoin ETF is exciting news for investors,” He further said that; “Investors will be able to trade bitcoin on a regulated stock exchange. It will be as simple as buying shares through their bank or brokerage.”
Instead of the traditional bitcoin exposure through derivatives and futures contracts, EBIT will be backed directly by physically settled bitcoin holdings. That way, it will provide investors with exposure to the daily price movements of bitcoin’s U.S. dollar price based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark price index.
In affirmation, Evolve Chief Investment Officer and COO Elliot Johnson said;
“EBIT will directly own bitcoin on the Bitcoin blockchain in a cold wallet,” also that “Investors will have confidence in the secure investment process for the Bitcoin ETF.”
prt from the Bitcoin ETF, Evolve has gone ahead to become the second Ethereum ETF as described herein.
CI Galaxy Bitcoin ETF.
As previously stated, CI Galaxy Bitcoin ETF is the most recent North America-approved Bitcoin ETF. It is backed by Mike Novogratz’s Galaxy Digital. After its filing, it started trading on the Toronto Stock Exchange (TSX) Tuesday.
It is trading under the ticker symbols BTCX.B and BCTX.U and unhedged in Canadian dollars and U.S. dollars respectively. Through its announcement, the firm describes:
“BTCX’s management fee of just 0.40% represents the lowest management fee of any bitcoin ETF in the world today.“
CI Galaxy bitcoin ETF is managed by CI Global Asset Management, one of Canada’s leading investment managers. Galaxy Digital Capital Management LP, the Asset Management arm of Galaxy Digital, serves as the bitcoin sub-advisor and executes bitcoin trading on behalf of the ETF.