TORONTO — Bitcoin-based exchange traded funds are getting the go-ahead from Canadian regulators, creating a path for a fund structure that investment managers say is unique in the industry.
Toronto-based Purpose Investments says its Bitcoin ETF will likely start trading this week under the symbol “BTCC,” after the fund worked with regulators to make sure it could create something that follows the rules for both the ETF market and the digital asset industry.
An Ontario Securities Commission spokesperson says the regulator finished reviewing Purpose Investments’ final plan to offer securities last Thursday and gave the fund a receipt that makes it a reporting issuer in Ontario.
After Purpose Investments announced the milestone, another Canadian fund, 3iQ, said it also received preliminary receipts for a Bitcoin ETF in all of the Canadian provinces and territories except for Quebec.
Both funds claim to be “physical” Bitcoin ETFs, setting them apart from some of the other cryptocurrency investments out there, such as the Bitcoin futures that trade on the Chicago Mercantile Exchange.
Purpose Investments Chief Investment Officer Greg Taylor says that the fund is different from a derivative or futures contract, as Purpose Investments will buy Bitcoin every time someone puts money into the ETF.
This report by The Canadian Press was first published Feb. 12, 2021.
