- BTCC is the first bitcoin to get the status of an exchange-traded fund (ETF), claims issuer.
- The Canadian launch is a significant milestone for the North American cryptocurrency industry.
- Regulatory authority OSC has approved the launch of Canada’s second bitcoin ETF by Toronto-based Evolve Funds Group Inc.
World’s first Bitcoin ETF was on a roll in the Toronto Stock Exchange (TSX) debut on Thursday, trading some C$80 million worth of shares in first hour alone. The coin is traded with the symbol BTCC.B (for Canadian dollar) and BTCC.U (for US dollar).
BTCC is the first bitcoin fund to be granted with the status of exchange-traded fund (ETF), the issuer Purpose Investments Inc. said in a statement. Though European markets offer “physically backed” Bitcoin products that are traded like ETFs, BTCC has the official label of an ETF from regulatory agencies
In neighbouring US, several Bitcoin ETF requests were pending regulatory approval. Promoters, such as VanEck Associates Corp. and Bitwise Asset Management, have made their case for ETF filings.
But allegations of misuse and extreme price swings among cryptos remained a key concern for regulators. On the other hand, European “physically backed” Bitcoin ETF-like products have received some government backing.
The Canadian launch of BTCC is a significant milestone for the North American cryptocurrency industry, which received support from various high-profile financial institutions in recent months.
The Bank of New York and the Mastercard Inc. have accepted Bitcoin as a financial asset. Paypal and Square, too, have accepted the use of the crypto, while Apple Pay will allow it soon.
Critics, however, question that how BTCC activities can translate into real cash.
But ETF proponents argue that an exchange-traded fund would be much safer than Bitcoins that see huge price swings.
Pic Credit: Pixabay.
Crypto Popularity Soars
Cryptocurrencies of all genres had seen record highs in the last fortnight. Bitcoin hit its new peak of US$52,621.84 on Thursday. It has yielded more than 75 per cent return year-to-date (YTD).
The Bitcoin rally also points at people’s increased faith in digital currencies, magnified by the ongoing pandemic which had led to panic-selling in copper and oil.
Besides, Tesla’s recent investment of $1.5 billion has accelerated the Bitcoin surge. In addition, the Bank of New York Mellon Corp.’s decision to set up a Digital Assets Unit gave a boost to the industry.
Other cryptocurrencies such as Ether and Dogecoin have also been witnessing unprecedented rallies.
Meanwhile, the Ontario Securities Commission (OSC) approved the launch of Canada’s second bitcoin exchange-traded fund (ETF) by Toronto-based Evolve Funds Group Inc. The ETF will debut on TSX, the company said in a press release.