If you find yourself in Canada and have even a slight curiosity about Bitcoin , here's an update: A Toronto cryptocurrency startup, hailing from the Ethereum capital, Ethereum , has just received the nod to roll out a publicly-listed Bitcoin fund for the people of Canada.
Presently, it's uncertain how much traction the fund will gain amidst the sparse nature of Bitcoin's transactional infrastructure in Canada. Nonetheless, the event is hailed as a 'milestone' for the nation and possibly all of North America.
Indeed, the U.S. Securities and Exchange Commission (SEC) has consistently turned down numerous Bitcoin ETF requests, citing issues with the cryptocurrency market's security, liquidity, and volatility. Meanwhile, Canada’s equivalent regulatory body doesn't seem to share this sentiment.
3iQ Launches “The Bitcoin Fund”
On October 30th, 3iQ Corporation—a firm that zeroes in on crypto investments and disruptive tech—announced that they've secured regulatory backing from the Ontario Securities Commission (OSC) for their project dubbed \"The Bitcoin Fund.\"
This 'closed-end' fund is set to debut on a major Canadian stock exchange accessible to retail investors by year-end 2019, according to The Province . It's purported that investors can engage with this fund both through traditional and discount brokerages.
Additionally, it's been stated that shares of The Bitcoin Fund will qualify for inclusion in Canada’s Registered Retirement Savings Plans and Tax-Free Savings Accounts.
Per a press release Detailing the chronicle, this follows three years of diligent collaboration with the OSC’s Investment Funds and Structured Products Branch to establish an investor-friendly avenue to Bitcoin through a regulated, publicly-listed fund. Fred Pye, at the helm as CEO, remarked how they addressed concerns like pricing, custody, audits, and public interest in this regulated venture.
Gemini, the cryptocurrency exchange run by the Winklevoss twins, Cameron and Tyler, is set to supply the Bitcoin forming part of this fund.
Canada Warming to Crypto
This approval aligns with Canada’s recent warming up to the crypto revolution.
As highlighted by The Logic earlier this month, the Bank of Canada is contemplating launching a digital currency of its own.
An internal presentation at the Bank of Canada for Governor Stephen Poloz and senior officials suggested that the proposed crypto would be widely distributed, eventually replacing cash, tracking consumer data, and countering Bitcoin's perceived competition. The document emphasized:
\"Innovation is essential to remain competitive… A new payment system could bolster our financial framework.\"
Spokesperson Louise Egan, however, noted that discussions are just beginning. Still, the manuscript argues for digital currency benefits since physical cash is becoming outdated and pricey, while decentralization challenges existing monetary policies.
Certainly, the idea of a central bank digital currency, especially one potentially curbing the freedom associated with cryptocurrencies, contrasts with what many in the Bitcoin ecosystem value. Nonetheless, it shows that Canada is not overlooking blockchain and cryptocurrency advancements. Its impact on Bitcoin, good or ill, is something to ponder.
1Comment
In a day not too far off, the crypto world, occupied with incompatible and counterproductive methods now, will awaken to realize conventional finance has engaged the 95% unaware of crypto today.
It's crucial for crypto to get coordinated, crafted, and reach the untapped masses before the financial systems only differ in that paper money becomes obsolete.