(Ottawa) Canadian authorities on Friday authorized the launch of the world’s first exchange-traded fund of bitcoins, giving investors greater access to this encryption technology.
Published on February 12, 2021 at 5:34 p.m.
The Ontario Securities Commission (OSC), a policeman of the Toronto Stock Exchange, has given the go-ahead for the launch of this index fund proposed by Purpose Investments.
The fund is expected to list on the Toronto Stock Exchange « as early as next week » under the symbol BTCC, a commission spokesperson told AFP.
« This exchange-traded fund will be the first in the world to invest directly in « physically backed » Bitcoins rather than derivatives, offering investors easy and efficient access to the emerging asset class of cryptography without the risk of holding their own money in a digital portfolio, » Purpose Investments said in a statement.
The Gemini Cryptographic Platform will be the sub-custodian of the Bitcoins and Canadian CIBC Mellon will be the administrator.
Created by anonymous individuals and managed by a decentralized network, virtual currency is particularly volatile. No major central bank recognizes Bitcoin as a currency in its own right.
Born in 2009, Bitcoin was worth next to nothing at first, but this week it surpassed US$45,000, propelled by the announcement of a massive investment of US$1.5 billion in the first cryptomony by Tesla, which also intends to accept it as a means of payment.
U.S. and Canadian companies had tried in recent years to launch similar funds, but without success.
In recent weeks, several of them have filed preliminary prospectuses with stock exchange officials in Canada and the United States for an initial public offering.