North American First Bitcoin ETF give permission to go ahead in Canada

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Purpose Investments Inc. said the Canadian securities regulators approved the launch of the Bitcoin Purpose ETF, making it the first to receive regulatory approval in North America.

The fund is intended to provide investors with exposure to the world’s largest cryptocurrency by investing directly in physically settled Bitcoin, the company said in a statement. Although this is set to be the first investment tool for Bitcoin officially called an exchange-traded fund, Europe boasts a range of “physically backed” Bitcoin exchange-traded products that act as effectively as an ETF.
This is not the first time that Canada has defeated the US in regulatory approval of the ETFs. The Canadians introduced the first ever ETF and also released marijuana-related funds to their southern neighbours. Industry participants say that this is a promising sign for companies planning to sell their own ETFs on U.S. exchanges.

“Canada has a long tradition of authorising new forms of ETFs before the United States. And the U.S. has a tradition of follow-up. So, we think this is nett positive news for bitcoin hopes in the U.S.,” said Bloomberg Intelligence ETF analyst Eric Balchunas.

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Current bitcoin trusts in the U.S. frequently trade large premiums, and investors pile up individually, as purchasing investment trusts can be simpler than buying the coins themselves. ETF advocates claim that such a system would help hold rates in line with nett asset values.

There are currently at least four active filings for the Bitcoin ETF in Canada that have yet to be accepted, according to data collected by Bloomberg. The companies that have filed since the beginning of the year are Evolve Funds, Horizons ETFs, Accelerate Financial and Arxnovum Investments.

In the United States, VanEck Associates Corp. and Bitwise Asset Management have pending ETF filings. The continuing challenges to U.S. acceptance include its notorious price fluctuations that stir up unsuspecting retail investors and claims of industry manipulation.

 

“We are excited by this development for the entire industry, but more importantly for investors who would like regulated and transparent exposure to this new asset class,” said Matt Hougan, chief investment officer of Bitwise Asset Management. “We look forward to the day when the United States regulatory environment has evolved to a state where Bitcoin ETFs can be issued here as well.”

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