Canada's main securities regulator has cleared the launch of the world's first bitcoin exchange traded fund, an investment manager said on Friday, providing investors greater access to the cryptocurrency that has sparked an explosion in trading interest.
The Ontario Securities Commission has approved the launch of Purpose Bitcoin ETF, Toronto-based asset management company Purpose Investments Inc. said in a statement. The OSC confirmed the approval in a separate statement to Reuters."The ETF will be the first in the world to invest directly in physically settled Bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency," Purpose Investments said.
An ETF could offer some advantages to investors, such as buying at net asset value rather than at a premium, said Arthur Salzer, chief executive officer of Northland Wealth Management Elon Musk's Tesla revealed on Monday it had bought US$1.5 billion worth of the cryptocurrency and would soon accept it as a form of payment for its cars, while the cryptocurrency has been gaining acceptance among mainstream financial firms.