Even though the market continues to expect positive news with regards to Bitcoin ETFs from the USA, its neighbor Canada has already launched several of such investing instruments in 2021, creating new ways for people to take advantage of the rising crypto potential.
As compared to pre-pandemic levels, Bitcoin is still in the positive, yet the +50% drawdown seen since April, when a temporary top had formed, has not been favorable for the newly-launched Bitcoin ETFs in Canada, which are not trading heavily in red territory.
Canada launched Bitcoin ETF in February 2021
The Toronto Stock Exchange announced in February this year the world’s first Bitcoin Exchange Traded Fund (ETF) would be launched, a direct custody Bitcoin ETF designed to provide exposure to the most important cryptocurrency in the world by investing directly in physically settled BTC.
In contrast with traditional crypto exchange platforms, investors can get involved in Bitcoin via an instrument listed on the stock market, compliant with regulation and some of the highest standards.
Purpose Bitcoin ETF, or BTCC, has been followed by several other Bitcoin ETF listings, and now investors have 4 choices when wanting to take advantage of the BTC price using an ETF. However, the bear market now still in play has been a negative factor for investors looking to gain long exposure.
BTCC trades near all-time lows
Based on the last closing price on the TSX, BTCC is trading at 6.94, down more than 40% from the all-time high reached on April 14th. That coincided with the all-time high in Bitcoin and since then, the ETF has been trading south, dropping impulsively as investors dumped their holdings.
Increased regulatory scrutiny around crypto as well as poor technical conditions led to a sharp reversion to the mean, which continues to act negatively on the near-term price action prospects.
Bitcoin trading – an alternative when prices are dropping
Although the emergence of Bitcoin ETFs is a positive sign for the industry, the lack of gains in the market is not proper for investors. As a result, using an online crypto trading platform like Dripcoin represents a more viable option, especially for retail traders wanting to get involved with little funding.
Using a trading platform provides the opportunity to sell short and not just buy long, creating an environment where even bear markets equal potential trading opportunities. Dripcoin covers a variety of cryptocurrencies, including Bitcoin, facilitating margin trading and access to tight trading costs.
Where cryptocurrencies are headed from this point forward is still uncertain. Conditions might be oversold, yet a poor sentiment can act as a drag on valuations. Buyers might be thinking this is the right moment to step in, however, a new wave of selling could provide more attractive levels for long-term investments in Bitcoin.
The market expects the Bitcoin ETF industry to expand in other leading countries, but in the meantime, Dripcoin and other trading platforms can continue to attract more customers, due to affordability and transparency.