Canadian regulator, the OSC has authorized the management company Evolve Funds Group to launch its Bitcoin ETF (Exchange Traded Fund).
February 17, 2021 | AtoZ Markets – The Ontario Securities and Exchange Commission (OSC) has approved Canada’s second Bitcoin ETF (Exchange Traded Fund) with the Evolve Fund Group. As Bitcoin prices hit record highs above $51,000, institutional investors’ access to cryptocurrencies is likely to expand further.
Second Bitcoin ETF Approved in Canada
The Evolved Fund reportedly had just submitted a Bitcoin ETF prospectus about three weeks ago. This ETF includes two ticker symbols. One is EBIT denominated in Canadian dollars and the other is EBIT.U denominated in US dollars.
EBIT offers “unhedge-free exposure to daily price movements” of Canadian dollar-denominated Bitcoin. EBIT.U, on the other hand, offers exposure to US dollars.
The fund uses CF Benchmarks’ Bitcoin Reference Rate to track price data. The index is a compilation of data from multiple BTC/USD markets into a daily benchmark index.
The latest prospectus submitted to the OSC states the fund’s investment objectives as follows:
“The purpose of the Evolve Fund is to provide unit holders with exposure to US dollar-denominated Bitcoin price movements and to take advantage of the creation and redemption process to minimize tracking errors. “
To achieve this goal, the Evolve Fund will invest in long-term holdings of BTC purchased through Geminai NuSTAR and other platforms.
According to the prospectus, the fund has a passport system that allows access to the fund in all 10 Canadian states and three territories.
CF Benchmarks CEO Sui Chun said,
“By using the regulated Bitcoin reference rates provided by CF Benchmarks, ETFs track the value of Bitcoin and ETF stocks. Investors don’t have to pay a soaring premium in the secondary market because they create and redeem daily. “
The Evolved Fund is the second Bitcoin ETF approved by Canadian securities regulators this month. The Purpose Bitcoin ETF was approved for the first time in North America on February 12.
Think we missed something? Let us know in the comment section below.