A Third Bitcoin ETF Launches On The TSX Today

Baystreet.ca
·2 min read

The boom in cryptocurrency exchange traded funds (ETFs) continues as a third Bitcoin ETF launches on the Toronto Stock Exchange (TSX) today.

The CI Galaxy Bitcoin ETF launches today (March 9) under the symbol “BTCX” on the TSX. The newest Bitcoin ETF joins the Purpose Bitcoin ETF (BTCC) and Evolve Bitcoin ETF (EBIT), both of which launched in February of this year.

The slate of Bitcoin ETF launches in Canada is another sign that the cryptocurrency is becoming a broadly acceptable asset and introducing a whole new class of investors to the world of cryptocurrencies.

Galaxy Digital Asset Management, a subsidiary of Galaxy Digital, will execute BTCX trading and act as a sub-advisor for the new ETF. CI Global Asset Management submitted the ETF prospectus for regulatory review in February and it was quickly approved.

Exchange traded funds allow investors to gain exposure to a variety of different stocks or commodities by purchasing a single tradable asset. In the case of Bitcoin ETFs, investors use the products as a simplified means of investing in Bitcoin without holding the cryptocurrency in a digital wallet or other storage. Instead, investors in the ETFs are entrusting custody and management of the digital assets to fund managers for a small fee.

Other Bitcoin ETFs recently launched in Canada have seen early success. The Purpose Bitcoin ETF attracted more than $470 million of investments one week after launching in February, and the Evolve Bitcoin ETF currently has more than $54 million in assets under management.

Bitcoin ETF applications in the U.S. have been repeatedly rejected by the Securities and Exchange Commission (SEC) on the grounds that Bitcoin markets can be easily manipulated. But the recently inaugurated administration of U.S. President Joe Biden has spurred hopes that regulators might take a second look at Bitcoin ETF applications.

CI Financial has also filed for an Ether (ETH) cryptocurrency ETF in Canada. CI is seeking approval to list the Ether ETF on the Toronto Stock Exchange. If approved, the firm would manage the ETF with Galaxy as a subadvisor. The Ether ETF would trade under the ticker symbol “ETHX” and charge an annual management fee of 1%.

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