This is an exchange-traded fund that will use bitcoin as an underlying asset, that is, buy the first cryptocurrency and sell its shares to investors, explains Olga Prokhorova, an expert at the International Financial Center. Investors who buy these securities will be able to make money on changes in the exchange rate of the coin.
They will not work directly with digital money, which means that their assets will be under reliable protection. Unlike exchanges, which have been repeatedly hacked by hackers worth hundreds of millions of dollars, bitcoin ETF issuers are responsible for saving clients’ funds and insuring them.
An exchange-traded fund (ETF) based on bitcoin managed by the Canadian company Purpose Investments raised $ 421 million in the first two days after launch, Bloomberg Intelligence analyst Eric Balchunas said.
The expert noted that for the US market, this figure is proportionally equivalent to $ 8 billion.
If the Purpose Bitcoin ETF keeps pace, it will become the largest exchange-traded fund in Canada in 20 days, Balchunas added.
The regulator approved the company’s application on February 11, 2021. The fund became the first Bitcoin ETF to be registered in North America. Trading his shares under the ticker BTCC on the Toronto Stock Exchange (TSX) started on Thursday 18 February.