As digital assets investing continues to become more widely adopted by institutional clients, Canada is introducing its second cryptocurrency exchange-traded-fund (ETF). The Ontario Securities Commission (OSC) has reportedly approved the second Bitcoin ETF from Evolve Funds, which has come only a few days after the launch of the Purpose Bitcoin ETF.
The new fund aims to offer investors exposure to the daily price movements of the US dollar price of Bitcoin (BTC), the flagship digital currency. Many crypto investors believe an ETF could be a way for more retail clients to gain price exposure to Bitcoin. An ETF trades on the regular stock markets, and investors are not required to set up a crypto-asset wallet to make investments.
The Evolve ETF will be launched on the Toronto Stock Exchange under the ticker symbols ‘EBIT’ and ‘EBIT.U.’ This latest development in Canada may lead to somewhat of a domino effect that could ultimately result in the launch of US-based Bitcoin or Crypto-based ETF.
Sui Chung, CEO of CF Benchmarks, noted that now that the OSC has stated that if a product is properly constructed, then the crypto-asset market is mature for these types of financial instruments. Chung added that the crypto industry’s attention “inevitably turns south of the border to the US.” Chung questioned whether the US Securities and Exchange Commission (SEC) would finally decide that “the time is right” for a Bitcoin ETF.
In the United States, where a Bitcoin ETF still hasn’t been launched, the rise of virtual currencies indicates that the country may want to take a more serious look at Fintech-focused ETFs that may enhance the digital financial services sector.
ARKF aims to make investments in equity securities of firms that ARK thinks are focused on moving financial services and economic transactions to technology infrastructure platforms. These companies may streamline modern financial services by making services more user-friendly and a lot more accessible while lowering costs.
FINX aims to offer investments that usually correspond to the price and yield performance, before adding fees and other expenses, of the Indxx Global Fintech Thematic Index. The index has been developed to offer exposure to exchange-listed firms in developed capital markets that offer innovative Fintech products, including businesses focused on mobile payments, peer to peer and marketplace lending, financial analytics software, and alternative currencies, as specified by the provider of the index.
As noted by ETF Trends, another established fund that’s looking to capitalize on these developments is the Goldman Sachs Motif Finance Reimagined ETF (GFIN), which aims to offer investment results that correspond (before accounting for fees and other miscellaneous costs) to the performance of the Motif Finance Reimagined Index.
The fund aims to achieve its investment goal by strategically investing around 80% of its assets in securities that are part of its underlying index. The index has been developed to provide exposure to firms with common equity securities that are listed on exchanges in various developed markets (that may be able to take advantage of the structural changes in the support and delivery of modern financial services).