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- Ontario Securities Commission has approved the world’s first publicly traded Bitcoin ETF
- Several territories and provinces in Canada can now trade Bitcoin ETF to gain exposure to the emerging crypto market
- Purpose Investment will take no trailing commission on the Bitcoin instrument
Bitcoin ETF is now allowed to trade in the following Canadian provinces. On Thursday, Canada’s Ontario Securities Commission issued an official statement, stating that the regulator has approved the proposal of BTC Exchange Traded Fund (ETF). It is known that the ETF was proposed by Purpose Investments, a Canadian asset management firm.
Following an asset management firm’s official release, it is revealed that Gemini, a United States-based cryptocurrency exchange and custodian, will serve as the sub-custodian. On the other hand, CIBC Mellon Global Securities Services Company, a Toronto-based investment servicing firm, will act as an administrator.
Bitcoin ETF traded is allowed in several Canadian jusrisdiction
According to the Ontario Securities Commission’s official statement, the provinces and territories under Canada are now allowed to trade Bitcoin ETF. Such zones getting green signals include British Columbia, Yukon, Alberta, Newfoundland and Labrador, Prince Edward Island. On the other hand, Manitoba, Quebec, Nova Scotia, Saskatchewan, Nunavut, New Brunswick, and Northwest Territories can also enjoy trading the Bitcoin instrument. However, if the instrument’s condition is satisfied, then a receipt for the prospectus is deemed to be issued by the regulator in each aforementioned jurisdiction.
Exposure to the emerging crypto market without self-custody
The latest approved Bitcoin ETF will help the Canadian residents to gain exposure to the emerging cryptocurrency market. According to Som Seif, the Chief executive officer of Purpose Investment, the world’s first ETF’s approval will allow their clients to invest directly in physically settled Bitcoin and not derivatives. The ETF will allow the investors to quickly and efficiently access the digital currency’s emerging asset class without any associated risk of self custody within a hardware wallet. Like physical gold and silver-backed products, the Bitcoin ETF will also be backed directly by Bitcoin holdings.
No trailing commission on holding Bitcoin instrument
Purpose Investment, the Canadian assets management firm, has highlighted that it will not be charging any fee for holding the Bitcoin ETF. Such fees on holding ETFs are known as trailing commissions. However, it is known that an annual maintenance fee of 1% will be levied. On the other hand, the firm has yet not decided the operating expenses and the trading costs. Indeed, Gemini crypto exchange will serve the firm as the sub-custodian.
