The bitcoin exchange-traded fund (ETF) of the financial company Evolve Funds Group Inc has been approved by the Ontario Securities Commission (OSC) in Canada, becoming the second bitcoin ETF approved by Canada after Purpose Investments, which will be traded on the Toronto Stock Exchange.
OSC approved the bitcoin ETF of Purpose Investment last week, and the management fee of both ETFs is 1%.
ETF is a simple way for investors who want to obtain bitcoin exposure. They don't need to hold their own assets, and they don't have to deal with the premium that bitcoin funds such as Gray Bitcoin Trust usually trade.
James Seyffart, ETF research analyst at Bloomberg Intelligence, said: "Evolve is the first company in the United States to apply for Bitcoin ETF. If there is no problem in launching Bitcoin ETF in Canada, this is a hopeful signal ... The regulatory framework in the United States is usually consistent with that in Canada. ".
Sui Chung, CEO of CF Benchmarks, said that Evolve ETF "provides investors with an easy-to-understand product that can obtain the ownership of Bitcoin through their existing brokers and consultants."
"By using the bitcoin reference exchange rate specified in the CF benchmark, ETF tracks the value of Bitcoin, and because its structure allows ETF stocks to be created and redeemed every day, investors do not need to pay a high premium in the secondary market."
Evolve has selected CF Benchmark as its index provider, EY as its auditor, Cidel Trust Company as its custodian, Gemini Trust Company as its sub-custodian, and CIBC Mellon global securities services as its fund manager.
The United States has not yet approved the Bitcoin ETF, but cryptocurrency supporters believe that the recent actions in Ontario indicate that the United States may soon approve the Bitcoin ETF.