There are now three Bitcoin Exchange Traded Funds (ETFs) in North America, all of which were approved by Canadian securities regulators within the last month. They are currently traded on the Toronto Stock Exchange. The last approved Bitcoin ETF, backed by Mike Novogratz ‘Galaxy Digital, traded on Tuesday.
3 Bitcoin ETFs in Canada
Canadian securities regulators approved three Bitcoin Exchange Traded Funds (ETFs) last month. The first North American Bitcoin ETF approved was the Purpose Bitcoin ETF, followed by the Evolve Bitcoin ETF. Both are now traded on the Toronto Stock Exchange (TSX).
The third is the CI Galaxy Bitcoin ETF, which traded on the TSX exchange on Tuesday. This Bitcoin ETF is traded under the ticker symbols BTCX.B and BCTX.U. The former is not hedged into Canadian dollars, while the latter is traded in US dollars. The announcement describes:
BTCX’s management fee of just 0.40% is the lowest management fee of any Bitcoin ETF worldwide.
The newest North American Bitcoin ETF is managed by CI Global Asset Management, a leading Canadian investment manager. Galaxy Digital Capital Management LP, the asset management arm of Galaxy Digital, acts as a Bitcoin sub-advisor and conducts Bitcoin trading on behalf of the ETF.
The announcement goes on to say that “BTCX invests directly in Bitcoin, with its holdings being valued using the Bloomberg Galaxy Bitcoin Index,” which tracks the performance of a single Bitcoin in US dollars. The index is owned and operated by Bloomberg Index Services Ltd. managed.
CI Global Asset Management has several other crypto products. The company launched the CI Galaxy Bitcoin Fund (TSX: BTCG) in December 2020, which it plans to include in the ETF. In addition, the CI Galaxy Ethereum ETF is currently being launched, which is expected to be “the first ETF in the world to invest directly in ether”.
The fund manager has also “submitted and received receipts for the preliminary prospectuses of CI Bitcoin and CI Ether Funds, which are mutual fund versions with the same investment objectives as BTCX and Ether ETF, respectively,” the announcement reads.
Mike Novogratz, Galaxy Digital Chairman and Chief Executive Officer, commented:
Bitcoin adoption has reached a tipping point and investors don’t want to sit on the sidelines.
Do you think the US SEC will soon catch up with Canada and approve a Bitcoin ETF? Let us know in the comments below.
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Bitcoin etf, Bitcoin ETF approval, Bitcoin etf approval, Bitcoin ETFs, Canadian Bitcoin etf, Canadian Bitcoin etf, Galaxy Digital, Mike Novogratz, Toronto Stock Exchange, TSX, US SEC
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