Canada officially approved bitcoin exchange-traded funds (ETF)
Over the last few days, the Ontario Securities Commission (OSC) approved not just one but two bitcoin ETFs. First was the Purpose Investment’s ETF followed by Evolve’s ETF. Both to trade on the Toronto Stock Exchange.
ETF investment model allows investors to receive income from the bitcoin’s increase in value without directly owning any crypto. This should attract more investors into the crypto market making the investment process more familiar and eliminating the risks of operating a crypto wallet. But it does not eliminate the volatility risks associated with the BTC and other cryptocurrencies. Therefore, investment into the bitcoin ETFs is considered “high risk.”
Canada joined Europe on the list of jurisdictions, which now allow such ETFs. The United States is not on this list yet. Although several companies filed with the SEC over the past few years, there have been no approvals issued to this date. Considering certain similarities between the U.S. and Canadian security market’ regulations, the OSC’s decision gives hope that the SEC may finally approve a bitcoin ETF in the near future.