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Canada has approved the second Bitcoin ETF


The Ontario Securities Commission (OSC) has approved the application for an exchange-traded fund (ETF) of Bitcoin filed by Evolve Funds Group, according to an announcement today.

“The cryptocurrency market is becoming more and more integrated with traditional financial markets. Evolve has developed a true first – to provide investors with an easy-to-understand product that is available through their existing brokers and advisers that grants them ownership of Bitcoin. ”Sui Chung, CEO of crypto index platform CF Benchmarks, that the ETF will use.

Exchange-traded funds are a type of security that comprises several baskets of assets, whose shares can be listed and traded on exchanges. In the case of a Bitcoin ETF, the underlying asset is the cryptocurrency. In this way, crypto ETFs allow institutional investors to get exposure to digital assets without having to buy or hold them.

An ETF generally tracks or follows the price of an asset or most of them traded as a single traditional instrument. Since ETFs can be freely traded on traditional stock markets, their holders can indirectly invest in Bitcoin or other cryptocurrencies.

“Historically, it has been difficult to get exposure to Bitcoin. EBIT aims to provide Canadian investors with a simple and efficient way to access the price of Bitcoin. Typically viewed as an uncorrelated asset, Bitcoin is generating institutional interest and is being seen as an alternative to traditional investments like gold and a possible hedge against inflation, ”said Raj Lala, President and CEO of Evolve ETF.

EBIT will hold Bitcoin directly in your cold wallets and will perform daily BTC valuations based on CF Benchmarks' Bitcoin benchmark rate. The company currently has no plans for Bitcoin futures or derivatives contracts.

Now that the OSC has said that if a product is well-built enough, the crypto market is mature enough for these types of financial products, the industry's attention inevitably turns south of the border to the US. Will the SEC finally decide that the time is right for a Bitcoin ETF? ”Chung added.

As reported Crypto report, the US Securities and Exchange Commission has rejected all Bitcoin ETF proposals in recent years. In Canada, on the other hand, securities regulators they approved recently the first Bitcoin ETF. And now it's two times two.

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