Canadian Regulator Approves First Bitcoin ETF

The Ontario Securities Commission has approved a Bitcoin exchange-traded fund, the first such fund to be listed on any North American stock exchange.

Dubbed Purpose Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ETF, the fund will be managed by Purpose Investments Inc, according to the official documents approved on Thursday. It was filed under the Multilateral Instrument Passport System in several Canadian jurisdictions. These territories include British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut.

“A receipt for the prospectus is deemed to be issued by the regulator in each of those jurisdictions if the conditions of the Instrument have been satisfied,” the official document noted.

The fund is designed to track the market price of Bitcoin but will deduct the fees and expenses of the manager. The fact sheet of the fund detailed that there will be a 1 percent annual management fee along with operating costs and trading expenses, which will be determined later.

Purpose has selected Cidel Trust Company, a subsidiary of Cidel Bank Canada, as its custodian and Winklevoss brother’s Gemini as the sub-custodian.

Bringing Bitcoin to the Masses

Bitcoin ETFs are traded on stock exchanges and can be easily bought and sold similar to any other company stock. These instruments cut the technical barrier of investing in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as anyone can invest in them through brokerages, without needing to worry about wallets and other stuff.

“Investors will incur customary brokerage commissions in buying or selling the ETF Units,” the prospectus stated. “The TSX ticker symbol for the ETF units, CAD ETF Non-Currency Hedged Units, and USD ETF Non-Currency Hedged Units is BTCC, BTCC.B, and BTCC.U, respectively.”

Meanwhile, the Toronto Stock Exchange lists other Bitcoin funds, but those are close-ended, meaning the units can be bought at the initial public offerings (IPOs) and reopenings.