The digital asset fund management firm, 3iQ, in collaboration with Coinshares, is on track to launch a Bitcoin exchange traded fund in Canada. A statement credited to 3iQ shows that the company has submitted its prospectus for a Bitcoin exchange-traded fund (ETF) to the Canadian securities regulatory bodies in all the 10 provinces and the 3 Canadian territories. If the filing is approved by the regulatory authorities, the ETF trading will commence on the Toronto Stock Exchange before April 15.
Canadian investment firms are pioneers in Bitcoin ETFs
According to the Chief Executive Officer (CEO) of Coinshares, Jean-Marie Mognetti, both firms are coming together to ensure that investors have easy access to digital assets of their preferences. The fund will trade the USD (the US dollars) using “BTCQ.U” as the ticker and the CAD (Canadian dollars). Canadian companies have become pioneers in the launch of crypto-based ETF in North America while the US Securities and Exchange Commission (SEC) is still reluctant to approve any crypto-based ETF.
In February, Purpose Investment, headquartered in Toronto, Launched a Bitcoin ETF. Likewise, Ninepoint Partners is also on track to modify its Bitcoin trust business to an ETF. In the same vein, Evolve Funds Group disclosed last month that it was planning to commence trading on Ethereum ETF. In April last year, 3iQ made a record of being the first to launch a Bitcoin fund in Canada. The fund is now worth $1 billion, as 3iQ and Coinshares now have a combined worth of $7 billion assets under management (AUM). The Coinshares’ CEO said in a statement that the company has monitored 3iQ’s steady growth after the firm was approved to start Bitcoin business operations in Canada.
How is the First Bitcoin Fund fairing in Canada?
A Bloomberg March report showed that Bitcoin ETF declined from $165 million the day it was launched to $17 million in early March. Also, the frenzy that accompanied the first global Bitcoin ETF has subsided and even disappeared. The first day of trading the Bitcoin fund, which is not only the first in North America but also worldwide, recorded $400 million trading volume, which fell sharply to $17 milion the next day. While the fund has been able to have about $500 million assets–a good start in a small Canadian crypto market–the quick drop in volume shows investors have lost interest in ETF, especially when it pertains to Bitcoin.
According to Ben Johnson, a crypto researcher, the rapid rise in interest at the beginning reflects the accumulation of demand, which arose from investors’ desire to seek alternative ways of holding Bitcoin. Added to that is the fact that Bitcoin was rising to record levels. He said that his long-term prediction is that Bitcoin ETF will be in tandem with Bitcoin price. In the same vein, the excitement that greeted tbs launch of Evolve Fund Group’s ETF has waned. Compared to BTCC, Evolve has a smaller ETF. In early March, it traded just $3.2 million compared to the $15 milion it started with.