The Canadian financial regulator has approved a second bitcoin ETF. The fund is called „EBIT“ and is intended to provide institutional investors with an alternative investment option in Bitcoin.
According to a recent announcement, the Canadian financial Crypto Profit regulator has approved another ETF for Bitcoin (BTC). Only a few days ago, the first Bitcoin ETF in the world was approved.
The current ETF, called EBIT, is a fund of the Evolve Funds Group and is offered via Evolve ETF. The target group for the ETF are institutional investors.
„ETF“ stands for „Exchange Traded Fund“ and refers to an index fund traded on the stock exchange. The fund usually tracks a certain index of values, usually shares, and thus enables a simple diversification of an investment.
There are ETFs for all kinds of sectors. Well-known are, for example, the „MSCI World“ or the „Nasdaq 100“. Now there are new ETFs for Bitcoin. Although these only have one component (Bitcoin), they reflect the value accordingly. For investors, these ETFs offer the advantage that they do not have to hold bitcoin themselves (and keep it safe), but can still profit from the increase in value.
Raj Lala, the president and CEO of Evolve ETFs, told Cision:
The Bitcoin ETF is an exciting thing for investors because they can trade Bitcoin on a regulated stock exchange through it. It’s as easy as buying shares through their bank or broker. There are no technical difficulties when investing in Bitcoin and transactions of EBIT units are done securely through a trusted broker investment platform. EBIT offers daily liquidity, transparency and security through a direct Bitcoin purchase via a regulated ETF structure.
Similar to so-called „physical“ equity ETFs, the Bitcoin ETF EBIT will also buy „physical“ Bitcoin and store it in cold storage, as Elliot Johnson of Evolve ETFs explained.
This new ETF and the previously approved one will almost certainly attract other major players to Bitcoin in the financial market. Institutional investors face many stipulations, and as a result, some have been unable to invest in Bitcoin even if they wanted to.
An ETF, on the other hand, has been a well-known investment option with a good reputation for almost 50 years. This should make investing easier for the big investors and flush more money into the Bitcoin market. This, in turn, should lead to a further rise in the price and increases the likelihood of a German Bitcoin ETF.