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