Since the launch of both Purpose and Evolve Bitcoin exchange-traded fund (ETF) in Canada the last February, the crypto exchange-traded products (ETPs) have continued to become more popular. Just like regular ETFs, Bitcoin ETFs allow investors to track the price of Bitcoin and trade it on the regular stock market like Nasdaq and Toronto exchange.
The major attraction of these Bitcoin-themed ETPs is also that they also help investors commit funds into Bitcoin without needing the service of a crypto exchange. However, Canada-based investment fund manager- 3iQ has announced that their Bitcoin ETF has launched on the Toronto Stock Exchange today.
3iQ partnered with CoinShares to launch the Bitcoin ETF
According to the announcement, the investment fund managers have partnered with digital asset investors- CoinShares, to launch the Bitcoin ETF today. The Bitcoin ETF has already started trading as BTCQ.U, and BTCQ, allowing investors to spend both the U.S dollars and Canadian dollars trading them. Fortunately for 3iQ, the Bitcoin ETF has started to prove its worth, as crypto investors have started to trade on the Bitcoin ETF.
Trading opened today at $11.89, and although it dipped a bit in fortunes, it has also recovered shortly. This further shows that the demand for crypto ETFs continues to be high amongst the crypto community, as many firms offering the services have been met with wide applause on the launch date.
Like every other Bitcoin ETF, 3iQ promises their clients that the new product will create Bitcoin exposure, offering them an opportunity to track the digital asset price with U.S dollars and Canadian dollars. According to the official announcement of the Investment fund managers, the Bitcoin ETF’s management fee is pegged at 1%, as the firm has promised their clients that they will continue to help provide some leverage on other fees for them.
Canada continues to boost Crypto ETFs
The refusal of the U.S SEC to license a crypto ETF in the U.S has given Canada the opportunity to become the continent’s leading destination for many crypto ETFs. Before now, the U.S SEC has been adamant in giving approval to investment managers to launch a crypto ETF, as they have been no evidence to prove that the cryptocurrency market is not manipulated.
However, there is optimism around the American crypto community that the imminent arrival of Blockchain Professor and Pro-Crypto advocate- Gary Gensler as the head of the SEC will shift the stance of the regulatory body. However, Canada has continued to license crypto ETFs, with the country having license seven Bitcoin ETFs since February.
Early last week, Purpose Investment, Evolve Fund Group, and CI Global Asset Management got a license from the country’s regulators to launch an Ethereum ETF. Much to the delight of the crypto community in the country, who have been the biggest beneficiaries of the innovations.