The United States missed the opportunity to become the first North American country to launch a Bitcoin Exchange Traded Fund (ETF) – the Ontario Securities Commission approved the launch of such a fund.
The Canadian regulator has registered the Purpose Bitcoin ETF to be managed by Purpose Investments. Access to the fund has been approved for companies and residents in the Canadian provinces of British Columbia, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon and Nunavut, and the Northwest Territories.
Purpose Bitcoin ETF is an alternative mutual fund that “invests over the long term and holds virtually all of its assets in bitcoin,” according to the document. Cidel Trust Company was appointed custodian, although in fact the cryptocurrency will be stored in the Gemini Trust service. Well-known consulting firm Ernst & Young will be the auditor of Purpose Bitcoin ETF.
The Toronto Stock Exchange has already approved the addition of ETFs to its platform. The ability to buy and sell ETF shares will appear shortly under the BTCC ticker. Other ETF applications from Evolve Funds Group, Horizons ETF Management, Arxnovum Investments and Accelerate Financial Technologies also received preliminary approval from the Ontario regulator.
Cryptocurrency enthusiasts hope that the decision of the Canadian regulator will also affect the attitude of the US Securities and Exchange Commission (SEC) towards bitcoin, which has repeatedly rejected similar applications. However, Ark Investment Management CEO Catherine Wood believes that the SEC is unlikely to approve a Bitcoin ETF before the capitalization of the first cryptocurrency reaches $ 2 trillion.
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