Canada Bitcoin ETF's - that escalated quickly
Toronto is the Capital city in the Province of Ontario, Ontario Securities Commission (AKA OSC) is the regulatory body governing that administers and enforces securities laws in in the Province of Ontario. And after performing a quick search of Ontario Securities Commission vs SEC one finds there a lot of negative reviews of the OSC when compared to the US regulatory body in taking action.
Although the tide might be shifting heavily in favor of the OSC. Just last week (Feb 17 2021) the OSC approved their first Bitcoin and Crypto exchange-traded fund (ETF) the Purpose Bitcoin ETF. Not only was the Purpose Bitcoin ETF was the first ETF approved by OSC but it was also the first approved in North America. You can find the Purpose Bitcoin ETF listed on the Toronto Stock Exchange (AKA TSX) under the symbol of "BTCC."
Then not resting on their laurels, just days after the first ETF approval the OSC (Ontario Securities Commission) was quick to approve their second Bitcoin and Crypto ETF. The Evolve bitcoin ETF is also trading on the Toronto Stock Exchange, under the ticker “EBIT"
Why did the OSC approve these ETF's? It has been recorded that both ETFs are physically settled ETF's. So, no fractional reserve, derivative based offerings here. Hey, is this a step towards sound money? Bite your tongue you say...
So how are our Northern neighbors adopting their new ETF's?I would say the response is overwhelming great; the Purpose Bitcoin ETF fund raised $421 million in the first two days after its launch.
What is the catch? Both ETF fund fees are said to be 1%, watch that leak in the boat!
US Stance on Bitcoin or Crypto ETF offerings?
Do not forget that the Winklevoss twins “COIN” bitcoin ETF filed with the U.S. Securities and Exchange Commission (SEC) in 2013 and were rejected. The rejection was tied to the volatility and price manipulation.
Will the US SEC reevaluate their stance on Bitcoin and Crypto ETF's based upon the stellar performance over the past few years? Not sure
I have found that the SEC is currently considering applications for registration of bitcoin ETFs from Bitwise, Valkyrie Digital Assets and VanEck. Perhaps missed a few, so the cases will be presented. Let's see how they rule now that a precedent has been set.
Summary Sure its still early in the life cycle of both of these two ETF's to see if they are a success. And the SEC has runway to review their current ETF applications. For those of you that are keeping score its OSC 2 and SEC 0 (zero). I am still optimistic that the SEC will not just run the race but will lead it in the end.
Disclaimer I am not an employee nor an agent OSC, SEC, TSX, Purpose Bitcoin ETF, Evolve bitcoin ETF. Nor am I an agent of any of those firms!
Resources
https://finance.yahoo.com/news/bitcoin-etf-100423780.html
https://en.wikipedia.org/wiki/Ontario_Securities_Commission
https://investorplace.com/2021/02/purpose-bitcoin-etf-btcc-what-to-know-about-north-americas-first-bitcoin-etf/
https://www.thestreet.com/crypto/bitcoin/421-million-flows-to-north-americas-first-bitcoin-etf-in-two-days
