Purpose Investments launches first Bitcoin ETF in Canada

Asset management firm Purpose Investment launched the first publicly traded Bitcoin exchange-traded fund (ETF) in Canada and North America after receiving the approval of the Ontario Securities Commission (OSC) on February 11. It will trade in the Toronto Stock Exchange under the ticker BTCC.

According to a fact sheet posted by Purpose Investments on the digital library Scribd, ‘the ETF seeks to replicate the performance of the price of bitcoin, less the ETF’s fees and expenses.’ Additionally, the fact sheet states that the Purpose Bitcoin ETF will not speculate on the short-term changes of Bitcoin’s prices on different exchanges.

This allows Canadian investors in certain territories, namely British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut to buy shares of Bitcoin and trade them the same way stocks are traded in exchanges.

The Canada-based asset management firm states in the same document that their Bitcoin ETF focuses on investors who ‘want capital growth over the long term; seek an attractive risk-adjusted rate of return; are investing for the long term; can tolerate high risk.’ Purpose Investments also reminded investors that this ETF comes with high risk and is not suitable as a steady source of income.

Cidel Trust Company will act as the custodian of the ETFs whereas the Gemini Trust Company of the Winklevoss twins Tyler and Cameron are posed to become the sub-custodian.

American traders hope the US SEC to follow suit

Following the approval of the OSC, cryptocurrency enthusiasts in the United States are hopeful that their Securities and Exchange Commission (SEC) will follow suit and allow Bitcoin ETFs to be traded in the country.

Asset management companies also have a bullish sentiment about US regulators approving Bitcoin ETFs under the Biden administration.

In an interview with news site CNBC last February 17, the founder, CIO and CEO of US-based asset manager Ark Investment Management Cathie Wood said that Biden’s appointment of Gary Gensler as SEC chair is a good sign for the approval of Bitcoin ETFs.

‘I think he understands the technology and he understands the currency itself, so I think the probability for [a Bitcoin] ETF has gone up,’ Wood responded to a question about the possibility of the SEC approving a Bitcoin ETF.

‘I think we have individuals now who really understand the space,’ Wood elaborated.

Gensler previously taught at the Massachusetts Institute of Technology (MIT) as a professor on digital assets and blockchain technology before being appointed as SEC Chair.

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