Digital Assets
Bitcoin ETFs Generating Interest as Application Pool Grows
Not only do the Americas now have multiple Bitcoin Exchange-Traded-Funds (ETFs), they continue to grow rapidly in popularity. This has been made clear as Purpose Investments Bitcoin ETF – found on the Toronto Stock Exchange (TSX) – has surpassed $1 billion in assets under management (AUM).
In fact, of ALL funds listed on the TSX, the newly launched Purpose Bitcoin ETF saw the second largest influx of new capital over the course of February.
Here is a look at the current crop of approved, and pending Bitcoin ETFs throughout the Americas, as others try to emulate the success of Purpose Investment and its offering.
North America
As of now, North America is where the action is at – Canada in particular. While the SEC is inundated with applications, Canadian regulators have already approved 3 iterations of a Bitcoin ETF.
Approved
Pending
With more applications being put forth each week it seems, the list above will no doubt soon grow. For the time being, the proposal which was put forth first (VanEck), has been acknowledged by the SEC. This means that a mandatory period during which the regulator gathers public commentary, and mulls over its decision, has begun.
For those looking to share their thoughts on the approval of a Bitcoin ETF by VanEck, the SEC comment form can be found HERE.
South America
While Canada remains the sole provider of Bitcoin ETFs in North America, South America will soon benefit from its own variant.
The Brazilian Securities and Exchange Commission, known as the ‘Comissao de Valores Mobiliarios’, has recently approved an application for a Bitcoin ETF from QR Capital. This new fund, which is expected to launch in the coming months, will be accessible by retail traders on the Sao Paulo Stock Exchange.
Brazil should be interesting to watch, as once the inaugural approval of a Bitcoin ETF is made, it will be hard to deny subsequent applicants. The first approval provides a blueprint, and precedent – each of which should open the floodgates for such products. Soon enough, there may be various options, as seen in Canada.
Sooner or Later?
Up until very recently, a Bitcoin based Exchange-Traded-Fund (ETF) did not exist. The closest thing resembling such a fund in North America were various Close-Ended-Funds (CEF). One example being 3iQs popular ‘Bitcoin Fund’ on the Toronto Stock Exchange.
While there has long been cries for Bitcoin ETFs, there was never any guarantee that such a product would be successful. If the number aforementioned applications, and performance of those approved to date are anything to go by, the demand is obviously there. More than that, the demand appears to be growing, as past doubters are being swayed by the success of the current crop of ETFs.
As this trend continues, the pressure for a United States based ETF continues to grow. It would appear as though the eventual approval of a Bitcoin ETF by the SEC is trending towards sooner, rather than later.
