Canada has given the green light to a second Bitcoin exchange-traded fund (ETF) a few days after approving the first.
Purpose Bitcoin ETF, ticker symbol BTCC, will begin trading in Toronto in what is being hailed a major milestone for the cryptocurrency and ETF industries.
Purpose Bitcoin ETF
According to Purpose Investments, this is the world’s first Bitcoin ETF backed by physically-settled BTC and not derivatives.
The ETF gives investors exposure to bitcoin without the associated risks of owning and safeguarding the digital asset.
The Fund is denominated in both the Canadian dollar and U.S. dollar units.
Purpose founder and CEO Som Seif is happy about the new ETF and the options it offers to investors.
“We are so happy to be able to offer this innovation to investors, making the process of owning Bitcoin easier than ever,” said Seif.
“We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset, further cementing the investment opportunity it presents,” he continued.
The ETF, according to Seif, is Purpose’s way of offering investors alternative solutions that they are not accustomed to.
“Driving forward to be the leader in cryptocurrency investing is a testament to Purpose’s goal of providing investors with alternative investment solutions that are not based off of traditional benchmarks.”
Bitcoin’s growing popularity
Purpose will be the manager of the ETF while Ether Capital Corporation will be a consultant to Purpose.
Ether Capital CEO Brian Mosoff acknowledged that bitcoin’s growing popularity is attracting institutional investors.
“We’ve seen the growing popularity of Bitcoin as both individual investors and institutions have increased their exposure to cryptocurrency as an asset class, using it as a tool to diversify and strengthen their portfolios,” said Mosoff.
Purpose worked for several months with the Ontario Securities Commission (OSC) to finalize the approval and launch of the ETF.
America lags behind
While Europe is home to several “physically-backed” Bitcoin exchange-traded products that an ETF, BTCC is the first of its kind in North America.
The U.S. is yet to approve a bitcoin or crypto ETF, however, VanEck and Bitwise Asset Management – which just launched a DeFi Crypto Index Fund – have their filings pending.