A Bitcoin ETF has been approved in North America. Canadian securities regulators on Thursday approved the first publicly traded Bitcoin exchange-traded fund Purpose Bitcoin ETF.
While everyone was looking at the SEC to approve the first ETF in the US, Canada has made a move for it and proven its progressive view of Bitcoin and crypto at large. The Bitcoin ETF is set to provide exposure to long term, “high-risk” investors. The approval is set to cover these territories, British Columbia, Alberta, Saskatchewan, Yukon, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Labrador and Newfoundland, Northwest Territories, Manitoba, and Nunavut.
The Purpose Bitcoin ETF will debut in the Toronto Stock Exchange BTCC.U. The fund will buy Bitcoin that investors can buy in Canadian or US Dollars. It is reported that it will offer its units at market price plus management fees and expense fees.
Bulls Celebrate Bitcoin ETF Approval in Canada
In past interviews, the founder and CEO of Accelerate, the firm behind an ETF seeking to offer ABTC units on the Toronto Stock Exchange, has talked about the opportunity firms see in the new asset class.
“Bitcoin has been one of the best-performing asset classes on a 1-year, 3-year, 5-year, and 10-year basis, both absolute and risk-adjusted. Given Bitcoin’s historical track record and future potential, along with its portfolio diversification properties, we are looking forward to offering investors exposure to the asset class in an easy-to-use, low-cost ETF.”
Notably, this is the second ETF approval in the world this week. Earlier in the week, Bermuda approved a Hashdex and US stock exchange Nasdaq ETF that is set to expose investors to Ethereum, Bitcoin Cash, Stellar Lumens, Chainlink, Litecoin, and Bitcoin of course.
In Canada, there are still a number of filed ETFs. The decision to reject or approve remains with the regulators. But following the approval of the Purpose Bitcoin ETF, most look set to pass.
Following this news, bulls seem to have taken control of the market. Bitcoin has gained around 5% at the time of press. This has successfully pushed prices back above $47K. However, the ETF news is not the only positive development in the last few hours. Miami Mayor Francis Suarez has contributed after announcing that his Bitcoin resolution has been approved. The Mayor has the approval to pay employees in BTC, allow for city fees and taxes in BTC. It further looks into investing part of the city treasury in BTC.
Back in the US, where it was generally assumed the first ETF would be approved, the SEC has stubbornly rejected every single one that has found its way to its office. After years of speculation, the regulators would approve one, investors lost track and interest in this. But it remains a major step in the acceptance of Bitcoin as a mainstream asset. With Canada now onboard and institutional interest high right now, the SEC is likely to look into new proposals optimistically.