Canada has shown a more favorable position than the US regarding Bitcoin
Two exchange-traded Bitcoin funds (ETFs) have been approved in Canada. Evolve Bitcoin ETF has become the second Bitcoin ETF to obtain approval from the Canadian securities regulator. The first approved Bitcoin ETF started trading on Thursday. Some believe that the approval of Bitcoin ETFs in Canada increases the chances of one being approved by the United States Securities and Exchange Commission (SEC).
Two North American Bitcoin ETFs approved
North America now has two approved exchange-traded Bitcoin funds. Evolve Funds Group Inc announced on Tuesday that it was cleared to launch a Bitcoin ETF, making it the second Bitcoin ETF approved in North America. With $ 1.7 billion in assets under management, Evolve is one of Canada’s fastest growing ETF suppliers.
The first Bitcoin ETF approved in North America was released for release last week by the Ontario Securities Commission and started trading Thursday on the Toronto Stock Exchange.
The Evolve Bitcoin ETF will also be traded on the Toronto Stock Exchange (TSX), subject to approval by the exchange. It will be “one of the first physically settled Bitcoin ETFs in the world”, the company described, adding that there will be two offers: ETF units not covered (ticker: EBIT) and USD units not covered (ticker: EBIT.U).
Raj Lala, President and CEO of Evolve ETFs, commented:
Bitcoin ETF is exciting news for investors. Investors will be able to trade Bitcoin on a regulated stock exchange. It will be as simple as buying shares through your bank or broker.
The Evolve Bitcoin ETF will provide investors with exposure to the daily movements of the Bitcoin price in U.S. dollars, the company said. “The ETF will not seek exposure through derivatives or futures contracts and will be backed directly by physically liquidated Bitcoin assets.”
Elliot Johnson, chief investment officer and chief operating officer, Evolve ETFs, explained:
“EBIT will directly hold BTC on the Bitcoin blockchain in a cold wallet. We are delighted to be working with the best cryptocurrency specialists, including Gemini Trust Company, CF Benchmarks, Cidel Trust Company and CIBC Mellon Global Services. ”
The cryptocurrency community applauds the Canadian regulator for continuing to approve Bitcoin ETFs. Some believe the U.S. SEC will follow suit and approve a Bitcoin ETF this year. Among them is Twitter user “Mags”, who believes that two Bitcoin ETFs approved in Canada “increase the likelihood that a US ETF will be launched in 2021”.
The user added that “most (if not all) of the SEC’s previous concerns have been addressed,” emphasizing that government officials and regulators “look to competing jurisdictions, especially with regard to innovation – the precedent has been set.”
Several Bitcoin ETF proposals have been submitted to the U.S. SEC.