Canada is showing an increase in the adoption of cryptocurrency, particularly Bitcoin. A second Bitcoin ETF (exchange-traded fund) was launched today.
Bitcoin ETF Approved by Authorities Today
The Bitcoin ETF was created by Evolve Funds Group. The application by Evolve was successfully approved by the Ontario Securities Commission(OSC) this morning. The fund is named EBIT, probably coined from the words ETF and Bitcoin.
The ETF will give institutional investors another way to invest in Bitcoin. These investors get to enjoy the profitability of Bitcoin without holding or buying it. ETFs are a kind of security that allows investors to put money in different assets at once.
These ETFs allow investors to enjoy interest from different assesses at once while minimizing risk. A Bitcoin ETF, like EBIT, primarily consists of Bitcoin, with other assets.
EBIT will make use of a crypto indices platform known as CF Benchmarks. CEO of CF Benchmarks, Sui Chung is confident that the union between crypto and other financial institutions is becoming stronger.
The newly launched ETF will hold investors’ Bitcoin in cold wallets, which are generally safer than hot or online wallets. Every day, the Bitcoin in Evolve’s possession would be evaluated according to CF’s rate.
“Evolve has developed a true first—giving investors an easy-to-understand product” the CEO explains. Chung goes ahead to say that EBIT is recommended as it “available through their existing brokers and advisors that gives ownership of Bitcoin.”
Evolve Group says it has seen the demand of Canadian investors for Bitcoin, and wants to help them benefit from it. BTC is now been seen as an alternative to regular investments such as gold. Investors are also observing it can serve as a good hedge against inflation.
While Canada’s neighbour the Unites States has been disproving if ETFs, Canada seems to be more open to them. 5 days ago, Canada approved its first Bitcoin ETF, which also made history as the first Bitcoin ETF in North America. The ETF is dubbed the ‘Purpose Bitcoin ETF.’