North America’s second tradable bitcoin fund (BTC) received regulatory approval on Tuesday, offering institutional investors another potential entry point into digital assets.
Less than three weeks after filing a preliminary prospectus for its bitcoin ETF, Evolve Funds Group Inc. announced Tuesday that its fund has been approved by the Ontario Securities Commission (OSC).
FNB has two ticker symbols: EBIT for shares denominated in Canadian dollars and EBIT.U for shares denominated in US dollars. EBIT is designed to provide exposure to daily price movements of bitcoin in Canadian dollars, while EBIT.U provides exposure to daily price movements in U.S. dollars.
More specifically, the fund will track price data using CF Benchmarks’ Bitcoin Reference Rate, which aggregates data from multiple BTC/USD markets into one benchmark per day.
The updated prospectus submitted to OSC describes the investment objective of the Fund:
The investment objective of the Evolve fund is to allow unitholders to track the daily price movements of bitcoins in U.S. dollars with minimal tracking error, using the creation and redemption process.
To achieve this goal, the Evolve Fund will invest in long-term holdings of BTC acquired through NuSTAR Gemini LLC and other platforms.
The prospectus has been prepared in accordance with a passport system that provides access to the fund in all 10 provinces and three territories of Canada.
Sui Cheung, CEO of CF Benchmarks, told Cointelegraph that Evolve ETF has developed a real first by offering investors an easy-to-understand product, available through their existing brokers and advisors, that passes ownership of bitcoin.
With a base rate of bitcoin, regulated by CF Benchmarks, the ETF tracks the value of bitcoin. Because it is structured so that ETF units can be created and redeemed daily, investors are not forced to pay high premiums in the secondary market.
The Evolve fund is the second bitcoin ETF approved by Canadian securities regulators this month. The Target Bitcoin ETF was approved last week, making it the first physically-based North American ETF.
The 3iQ ETF product was approved in Canada last year and is currently listed on the Toronto Stock Exchange. Unlike the Evolve ETF, however, the EiQ fund does not continuously issue new shares.
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