On Tuesday, another bitcoin exchange-traded fund (ETF) debuted on the Toronto Stock Exchange.
Regulators have accepted the final prospectus for the “CI Galaxy Bitcoin ETF,” according to a statement from provider CI Global Asset Management.
The ETF is due to start trading on the Toronto Stock Exchange (TSX) on Tuesday under the ticker “BTCX,” pending TSX approval.
BTCX would provide bitcoin liquidity to customers by allowing them to invest directly in the blockchain, with holdings priced using the Bloomberg Galaxy Bitcoin Index.
If authorized, BTCX will become the third bitcoin ETF in North America.
Three Canadian Bitcoin ETFs
Evolve Funds Group and Purpose Investment also reported related items on the TSX in February.
Purpose Bitcoin ETF (BTCC) and Evolve Bitcoin ETF (EBIT), both of which debuted last month, will be joined by the latest ETF.
Another indication that Bitcoin is becoming an institution-friendly commodity is the slew of Bitcoin ETF releases in North American markets, bringing a whole new generation of cautious buyers into the crypto environment.
Galaxy Digital Asset Management, or GDAM, a division of Michael Novogratz’s Galaxy Digital, will conduct BTC trading and serve as the current ETF’s sub-advisor. In February, CI Global Asset Management sent the ETF prospectus for regulatory approval.
Traditionally, exchange traded funds have enabled investors to gain exposure to a wide range of stocks or commodities by buying a single tradable commodity.
Investors use Bitcoin ETFs as a simpler way to invest in Bitcoin without directly owning Bitcoin, instead entrusting ownership and control of the crypto assets to fund managers for a minimal charge.
What is an ETF?
An exchange traded fund (ETF) is a form of security that consists of a group of securities, such as bonds, that primarily track an underlying index, but may also engage in or employ various strategies in a wide range of industries.
ETFs are similar to mutual funds in many ways; however, they are listed on exchanges and ETF shares during the day, much like regular stocks. An exchange traded fund (ETF) is a basket of securities that sell on a stock exchange, similar to a portfolio.
ETF share prices fluctuate during the day as they are bought and sold, unlike mutual funds, which only trade once a day after the market closes. ETFs may own all types of portfolios, such as shares, commodities, or bonds; others only hold US assets, while others hold foreign assets.
In comparison to direct stock sales, ETFs have lower costs and lower distributor fees. A well-known example is the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index.
ETFs may hold a variety of investments, including stocks, commodities, bonds, or a combination of investment categories. An exchange traded fund is a marketable security because it has a valuation that allows it to be bought and sold easily.
An ETF, including shares, is classified as an exchange traded fund since it is listed on a stock exchange. The price of an ETF’s stock fluctuates over the trading day as shares are bought and sold in the market.
Unlike index funds, which are not traded on an exchange and are only traded once a day after the markets close. ETFs, on the other hand, tend to be more cost-effective and liquid than mutual funds.