Canada is bringing a Bitcoin exchange-traded fund (ETF) to North America.
In a statement released on Thursday, the Ontario Securities Commission says it has granted approval for the introduction of a Bitcoin ETF proposed by Canadian asset management firm Purpose Investments.
The ETF is allowed to trade in the following Canadian provinces and territories: British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon, and Nunavut.
A Purpose Investments’ press release reveals that the US-based digital currency exchange and custodian Gemini will serve as the sub-custodian. Toronto-based investment servicing firm CIBC Mellon Global Securities Services Company will act as the fund administrator.
According to Purpose Investments’ CEO Som Seif, the ETF is the first of its kind, allowing clients to gain exposure to the leading crypto asset without the need to self-custody.
“The ETF will be the first in the world to invest directly in physically settled Bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency without the associated risk of self-custody within a digital wallet. Similar to physically-backed gold or silver products, the ETF will always be backed directly by physically settled Bitcoin holdings.”
The Canadian asset management firm highlights that there it will not charge fees for holding the Bitcoin instrument known as trailing commissions. An annual management fee of 1% will be levied while operating expenses and trading costs are yet to be decided.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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