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Canada accepts Bitcoin ETF

Photo of: Nathan VDH
by Nathan VDH

Canada had already accepted a first Ether-based ETF (ETH) last December. Called “The Ether Fund”, it had raised more than $75 million from Canadian investors prior to its launch.

On Thursday, February 11, the Ontario Securities Commission (OSC) officially approved the first Bitcoin Exchange Traded Fund (ETF) in North America. This ETF is being led by Purpose Investments Inc., an investment company.

It is led by Cidel Trust Company (a subsidiary of Cidel Bank Canada). According to a letter shared by SEDAR, the Gemini company founded by the Winklevoss brothers would be the sub-custodian of the fund. This pooled fund invests in and holds substantially all of the bitcoins involved.

According to the same document, the ETF would cover the vast majority of Canada’s territories.

According to a document from Purpose Investments, the ETF’s expenses will be composed of various operating and trading fees set by a management fee, amounting to 1% of the value of the CTS held.

Eric Malchunas, senior analyst at Bloomberg, raises an interesting point in his Tweet. According to him, the United States should follow this trend of the ETF on Bitcoin in the near future.

“Canada approves the first Bitcoin ETF. They must like their liberal regulators, or maybe they’re normal and the SEC [Securities and Exchange Commission] too conservative. Either way, the U.S. generally follows soon after. That’s a good sign for American Bitcoin ETFs. ยป

Other documents published on SEDAR show that several bitcoin-based ETF projects may also be in the approval process.