The Ontario Securities Commission (OSC) has made a landmark decision to approve an application from financial services company Purpose Investments Inc. to launch a Bitcoin ETF.
With this, North America finally has a Bitcoin ETF. The SEC had previously rejected multiple such proposals from Gemini Exchange and Van Eck SolidX.
Details Of The Documentation
As per records from SEDAR, a final decision document was issued on Thursday afternoon. The document notes:
"The prospectus has been filed under Multilateral Instrument 11-102 Passport System in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut. A receipt for the prospectus is deemed to be issued by the regulator in each of those jurisdictions, if the conditions of the Instrument have been satisfied."
As described, the Bitcoin ETF is an alternative mutual fund that "invests in and holds substantially all of its assets in long-term holdings of the digital currency bitcoin." According to the letter uploaded to SEDAR, these parties involved in the ETF as well:
- Cidel Trust Company, a Cidel Bank Canada subsidiary, that's designated as the fund's custodian.
- The Gemini Exchange is the fund's sub-custodian
- Ernst & Young is the fund's auditor, per a letter uploaded to SEDAR.
The ETF has received approval to trade on the Toronto Stock Exchange (TSX).
"Subject to satisfying the TSX’s original listing requirements in respect of the Fund on or before February 11, 2022, the ETF Units of the Fund will be listed on the TSX and offered on a continuous basis, and an investor will be able to buy or sell such ETF Units on the TSX through registered brokers and dealers in the Province or Territory where the investor resides. Investors will incur customary brokerage commissions in buying or selling the ETF Units. The TSX ticker symbol for the ETF units, CAD ETF Non-Currency Hedged Units and USD ETF Non-Currency Hedged Units is BTCC, BTCC.B and BTCC.U, respectively."
Bitcoin ETF Status In The United States
The SEC has repeatedly rejected plans for any Bitcoin ETFs as proposed by Gemini and Van Eck. However, with the OSC approving the ETF proposal and the crypto-friendly Gary Gensler becoming the new SEC chief, we might finally see some positive development here. A credible and regulated Bitcoin ETF will bring in a host of institutional investors into the market….not that that has been an issue in recent times.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.