By Hassan Mehmood (Saudi Arabia)
Arxnovum Investments Inc applied for Bitcoin exchange-traded fund (ETF) with Canada’s Ontario Securities Commission. According to the plan, the ETF will be listed on the Toronto Stock Exchange (TSX).
Arxnovum Investments CEO Shaun Cumby filed an application for Bitcoin ETF with the regulator. Before serving Arxnovum Investments, he was previously working at 3iq Corp as CIO. 3iq Corp is famous for introducing the first regulated BTC fund in the world.
Application with the Ontario Securities Commission
If the exchange-traded fund of the top digital asset is approved by the Ontario Securities Commission, it will open new opportunities for institutional investors to enter the digital space. However, there will be a lot of risks attached to Bitcoin ETF due to high volatility. It is not yet sure whether the Toronto Stock Exchange will approve it for listing or not. However, there is a plan to list bitcoin ETF with the ticker title “BIT.U.”
The US-based crypto company Gemini Trust has supported the filing. The Gemini Trust will act as a “sub-custodian” of assets held by the product.
After getting approval, Arxnovum Investments’ product may list on CFTC’s regulated derivatives cryptocurrency exchanges. So there are also chances that investors will see it on the Chicago Mercantile Exchange (CME).
Many digital asset companies tried to approve bitcoin ETF in the US, but all applications were rejected by the Securities and Exchange Commission. In February 2020, the SEC turned down the application of Wilshire Phoenix. It is supposed that the crypto market lacks stability and can be manipulated easily. Whales manipulate the BTC markets whenever they want to get a high return.
Launch of ETPs in Europe
However, few companies in Europe have become successful in launching similar entities, including exchange-traded products (ETPs). In June 2020, Deutsche Boerse, the third-biggest trading site in Europe, approved the application of 21Shares for the exchange-traded product. 21Shares listed its first Bitcoin ETP on the Switzerland-based “SIX Swiss Exchange.”
In December 2020, Valour Structured Products Inc. launched an exchange-traded product, Bitcoin Zero, for institutional as well as retail investors. Bitcoin Zero would cost no management fees to investors. Moreover, it is traded or handled in the same way as an exchange-traded fund.
Market analysts believe if an exchange-traded fund comes into the market right now it would pour a negative effect on the price value of the top-ranked cryptocurrency. This is because it would catch an investment that is currently in Grayscale’s Bitcoin Trust.
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