Cryptocurrency Analysis

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OSC approves the launch of first Bitcoin ETF



On Friday, the Ontario Securities Commission approved the launch of the world's first Bitcoin-traded fund, giving investors greater access to cryptocurrency and sparking an explosion of trading interest.

As a result, Bitcoin hit an all-time high of $ 49,000, growing by about 63% this year and by about 1.130% since mid-March 2020. The growth was also influenced by the American banking group BNY Mellon, which said it has formed a division that will help clients store, transfer and issue digital assets.



"There is clearly some nervousness at this level," OANDA analyst Craig Erlam said. He pointed out that a correction could occur shortly after reaching the target level which is $ 50,000.

Meanwhile, Tesla announced on Monday that it had bought $ 1.5 billion worth of cryptocurrency, and soon they will accept it as a form of payment.

And as mentioned above, the OSC has approved the launch of the Purpose Bitcoin ETF.

"The ETF will be the first in the world to directly invest in physically hosted Bitcoins. It will provide investors an easy and efficient access to the emerging asset class of cryptocurrency," Purpose Investments said.

Investors were able to trade Bitcoin using futures contracts on the CME derivatives exchange. They can also buy closed-end funds such as the Bitcoin Fund on the Toronto Stock Exchange.

Now, ETFs can offer investors some benefits. For example, lower fees.

According to Todd Rosenbluth, director of ETF and mutual fund research at CFRA, since 2013, eight firms have tried unsuccessfully to create a Bitcoin ETF in the United States.

But the Securities and Exchange Commission appears to be paying particular attention to issues related to market manipulation.

"While some expect that the approval of the Canadian ETF will pave the way for short-term approval of US ETF, we expect the new SEC to take its time to consider some new filings from VanEck and others," Rosenbluth said.

VanEck is a New York-based investment management firm.

In January, US President Joe Biden appointed Gary Gensler as the new Chairman of the Securities and Exchange Commission.





Andrey Shevchenko
Analytical expert
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