While the US is still assessing the risks of launching a Bitcoin ETF and is not rushing to approve the product, Canada has already made a decision and demonstrated a progressive view of Bitcoin and cryptocurrency in general.
The target Bitcoin ETF debuts on the Toronto Stock Exchange BTCC.U. The fund will buy bitcoins, which investors can buy in Canadian dollars or US dollars. Product price includes coins purchased at market price plus management fees and costs.
The permit applies to the following territories: British Columbia, Alberta, Saskatchewan, Yukon, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Labrador and Newfoundland, Northwest Territories, Manitoba and Nunavut.
In past interviews, the founder and CEO of Accelerate, which has already submitted an approved ETF approval application, spoke about the opportunities companies see in the new asset class:
“Bitcoin has been one of the best performing asset classes in 1, 3, 5 and 10 years, both in absolute terms and on a risk-adjusted basis. Given the historical achievements and future potential of bitcoin, we look forward to offering investors access to this asset class in an easy-to-use, low-cost ETF. ”
Notably, this is the second ETF approval in the world this week. Earlier, Bermuda approved Hashdex and the US stock exchange Nasdaq ETF, which will introduce the following cryptocurrencies to investors: Bitcoin, Ethereum, Bitcoin Cash, Stellar Lumens, Chainlink and Litecoin.
In Canada, there are other applications for launching ETFs, the decision on them is at the stage of adoption, however, after the approval of one, most likely, all others will also be agreed.
It looks like after this news, the bulls took control of the market, because Bitcoin added about 5%. Thanks to this, the price of BTC rose again above $ 47,000.
ETF approval in Canada is not the only positive development
Miami Mayor Francis Suarez announced that his Bitcoin resolution has been approved. Now the mayor has permission to pay employees in BTC, as well as receive city fees and taxes in this cryptocurrency. In addition, the possibility of investing part of the city treasury in bitcoin is being considered.
Crypto community members expect that the example of their northern neighbor will have a positive impact on making a similar decision in the United States.