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.
“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.
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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