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North American ETF Launched

The very much awaited Purpose Bitcoin ETF in Canada seems to be very popular.

North America’s first Bitcoin exchange-traded fund (ETF) launched today. It traded over $165 million worth of shares in just one day, including $80 million in the first hour.

The Purpose Bitcoin ETF has been approved in Canada early this month and runs on the Toronto Stock Exchange. The physical Bitcoin that the ETF trades is stored by Gemini, a crypto exchange.

According to an analyst from Bloomberg, Eric Balchunas, it was an “epic full first say” for Purpose.

Exchange-traded funds allow the investors to buy and sell shares continuously throughout the day.

The Bitcoin ETF allows the investors to buy shares that represent the digital asset without having to actually own the cryptocurrency.

The world’s first-ever Bitcoin ETF has been approved in Bermuda last year.

Purpose’s Bitcoin ETF allowed “easy and efficient access” to Bitcoin “without the associated risk of self-custody in a digital wallet,” according to Purpose, the asset management company that runs the ETF.

“We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset, further cementing the investment opportunity it presents,” Purpose CEO Som Seif mentioned in a statement.

Purpose’s Bitcoin ETF is the first ETF in North America. In the US, regulators have yet to approve one. The US SEC has rejected applications from different companies that want to launch an ETF, along them are Bitwise and Wilshire Phoenix. The SEC claimed that a “real” Bitcoin market does not exist in the US and that the currency’s price is susceptible to manipulation by those with significant holdings.

However, Canada has had a bit of luck: the Purpose Bitcoin ETF got the green light on February 11. And then a second ETF, by Evolve Funds Group, has also gotten approved this month, but it is not running yet.

Following today’s success, maybe a Bitcoin ETF in the US can be a step closer to reality. Although it might not be a good thing.

“Since a Bitcoin ETF has launched in Canada, this development might ‘steal the thunder’ surrounding the launch of any such fund in the US.”

Quantum Economics analyst Charles Bovaird

Bovaird continued: “More specifically, the existence of this Canadian ETF could make the approval of any US ETF less of a milestone since it would not be the first fund of this kind to be approved by regulators.”

The existence of one or more Candian ETFs, stated the analyst, could reduce the trading volume that a US Bitcoin ETF draws when it finally obtains approval from the SEC.

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