Bitcoin mania continues with the listing of the world's first Bitcoin ETF on the Toronto Stock Exchange. The Purpose Investments managed product is the first to be approved by regulators and should make it easier for investors to purchase the digital asset.
How does it work: The managers of the ETF purchase Bitcoin and issue shares that roughly track the prize of BTC.
- Purchasing a Bitcoin ETF gives you exposure to the cryptocurrency without actually having to hold it yourself. Instead of opening an account on a cryptocurrency exchange, ETF investors can hold shares of Bitcoin in their existing trading accounts.
How is it doing: In early trading, investors exchanged $145 million USD worth of shares. For Purpose Investments, who take 1% of the ETF in management fees, today's haul made them over $1.5 million.
Zoom out: Regulators in the US have been hesitant to sign-off on a Bitcoin ETF, but the success of a Canadian product could give them the confidence they need to approve a US equivalent. The listing of ETFs are another sign of Bitcoin's growing adoption and could further boost the digital currency's price.