A bitcoin exchange traded fund (ETF) lets traders gain exposure to BTC via traditional stock markets, without needing to directly buy or sell the digital asset on a cryptocurrency exchange.
A Bitcoin ETF is an exchange-traded fund that specifically tracks the price of the leading cryptocurrency and allows traders to purchase or sell the security on a stock exchange throughout the day. They can be cash-settled or physically-settled, meaning investors will receive either fiat currency or actual bitcoin upon exiting, respectively.
ETFs are regulated traditional financial products and can be bought through a number of retail-friendly mobile trading apps, including Robinhood, Trading212, TD Ameritrade and Fidelity. The most popular ones track major stock indexes, such as the Standard & Poor’s 500 Index, or other traditional assets and commodities like oil and gold.
Bitcoin ETFs have been a hot topic in the crypto space for many years, ever since the Winklevoss twins’ “COIN” Bitcoin ETF filed with the United States Securities and Exchange Commission (SEC) in 2013 was rejected. It was widely believed that a Bitcoin ETF would usher in a new wave of institutional investment into the crypto industry, bringing much-needed maturity and stability to the market. Seven years on, however, the SEC still has yet to approve a Bitcoin ETF despite dozens of proposals from multiple companies including a second Winklevoss Twin ETF in 2018, one from Bitwise, five from Direxion, two from GraniteShares and many more.
The main arguments given by the SEC for these repeat rejections have been that the Bitcoin market is too volatile, lacks sufficient surveillance and is too easily manipulated.
Things may be about to change, however, as Canada’s financial regulator, the Ontario Securities Commission (OSC), recently approved the world’s first two Bitcoin ETFs in quick succession. The Purpose Bitcoin ETF (BTCC) and the Evolve Bitcoin ETF (EBIT) are both physically settled ETFs and have applied to be listed on the Toronto Stock Exchange.
With the arrival of a Bitcoin ETF in North America, many are optimistic that the SEC will follow suit soon in the United States; especially now that Gary Gensler, former commissioner of the Commodity and Futures Commission (CFTC) and MIT blockchain tutor, is expected to replace ex-SEC Chairman, Jay Clayton.
“My guess is we get an ETF this year,” says Mike Novogratz, CEO of Galaxy Digital and former colleague of Gensler at Goldman Sachs in the late 1990s.
“Gary taught a class on blockchain at M.I.T. and on crypto. He understands it cold. He’s progressive, right? And progressives broadly are going to go after … the rent takers. Crypto is not a rent taker… Crypto is trying to disrupt the rent takers.”
Bloomberg Senior ETF analyst, Eric Balchunas, tweeted his support for the new Bitcoin ETFs, adding, “US usually follows shortly after. Good sign for US bitcoin ETF.”
Sui Chung, CEO of CF Benchmarks, also anticipates pressure will now be on the U.S. SEC to follow suit. “Now that the OSC has said that if a product is well constructed enough the crypto market is sufficiently mature for these types of financial products, the industry’s attention inevitably turns south of the border to the U.S.”
Bitcoin ETF FAQs
Who can invest in ETFs and how do you trade them?
You don’t need to be an accredited investor to purchase ETFs; anyone can invest in them.
All you need in order to begin investing in ETFs is to set up an online brokerage account or download one of the many mobile trading apps. From there, you’ll be able to buy and sell a wide range of ETFs that track a number of different markets. A list of leading mobile trading services can be found here.
What are the pros and cons of trading ETFs?
While it might seem counterintuitive to invest in a Bitcoin ETF rather than buy actual bitcoin, there are a number of advantages to doing it this way, namely:
No need to go through the process of having to store crypto safely yourself.
Buying an ETF through an online broker is significantly more secure, faster and less prone to outages than purchasing digital assets directly from a crypto exchange.
There are much clearer tax implications and guidance for traditional financial products than digital assets.
Stock exchanges are more liquid than crypto exchanges so it’s much easier to buy and sell ETFs.
There are, however, a number of disadvantages to investing in a Bitcoin ETF as opposed to buying the asset directly.
ETFs can only be bought and sold during market trading times, whereas crypto markets run 24/7. This means that if the price of bitcoin moves sharply, you could potentially have to wait hours before you have the chance to offload to buy up more.
It’s free to hold your own bitcoin but ETFs charge management fees.
Buying ETFs requires you to complete know-your-customer checks (KYC) but bitcoin can be bought anonymously peer-to-peer.
ETFs require you to trust third-party custodians.
Potential COVID exposure at multiple businesses and on Halifax Transit routes – HalifaxToday.ca
Nova Scotia Health Public Health is advising of potential exposure to COVID-19 at one location in Western Zone, four locations in Central Zone and various Halifax Transit routes. In addition to media releases, all potential exposure notifications are listed here: http://www.nshealth.ca/covid-exposures.
Anyone who worked at or visited the following locations on the specified dates and times should immediately visit covid-self-assessment.novascotia.ca/ to book a COVID-19 test, regardless of whether or not they have COVID-19 symptoms. You can also call 811 if you don’t have online access or if you have other symptoms that concern you.
Regardless of whether or not you have COVID-19 symptoms, those present at the following location on the named date and time are required to self-isolate while waiting for their test result. If you get a negative result, you do not need to keep self-isolating. If you get a positive result, you will be contacted by Public Health about what to do next.
- Callister’s Country Kitchen (7076 Highway 1 Coldbrook) on Feb. 15 between 3:30 p.m. and 7 p.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, March 1.
- Hop Scotch Dinner Club (1537 Barrington St, Halifax) on Feb. 19 between 6:30 p.m. and 10 p.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, March 5.
For the following locations, if you have symptoms of COVID-19 you are required to self-isolate while you wait for your test result. If you do not have any symptoms of COVID-19 you do not need to self-isolate while you wait for your test result.
- Bishop’s Cellar (1477 Lower Water St, Halifax) on Feb. 19 between 9 a.m. and 10:30 a.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, March 5.
- Sobeys Timberlea (65 Market Way Ln, Timberlea) on Feb. 21 between 12 p.m. and 3 p.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, March 7.
- Superstore Sackville (745 Sackville Dr, Lower Sackville) on Feb. 21 between 3 p.m. and 4:30 p.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, March 7.
Various Halifax Transit bus routes:
- Route 159 Portland Hills from Portland to Scotia Square on Feb. 18 between 5:30 p.m. between 6:30 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 4.
- Route 61 Auburn/North Preston from Portland to Scotia Square on Feb. 18 between 5:30 p.m. between 6:30 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 4.
- Route 14 Leiblin Park from Scotia Square to Mumford on Feb. 18 between 5:30 p.m. between 6:30 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 4.
- Route 1 Spring Garden from Mumford to Scotia Square on Feb. 19 between 2 p.m. and 3 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 5.
- Route 159 Portland Hills from Scotia Square to Portland on Feb. 19 between 2:30 p.m. and 3:30 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 5.
- Route 61 Auburn/North Preston from Portland to Scotia Square on Feb. 20 between 1:30 p.m. and 3:30 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 6.
- Route 14 Leiblin Park from Scotia Square to Mumford on Feb. 20 between 1:30 p.m. and 3:30 p.m. It is anticipated that anyone exposed to the virus on the named date may develop symptoms up to, and including, March 6.
Do not go directly to a COVID-19 assessment centre without being directed to do so. Please book an appointment online and do not go to a pop-up rapid testing location.
Currently, anyone who traveled outside Nova Scotia or PEI is expected to self-isolate alone for 14 days after arriving. If a person returning from non-essential travel outside Nova Scotia or PEI is unable to isolate alone, then everyone in the home where they are self-isolating will have to self-isolate as well.
When Nova Scotia Health Public Health makes a public notification it is not in any way a reflection on the behaviour or activities of those named in the notification.
All Nova Scotians are advised to continue monitoring for COVID-19 symptoms and are urged to follow Public Health guidelines on how to access care. Up to date information about COVID-19 is available at novascotia.ca/coronavirus
Three New Cases of COVID-19 – Government of Nova Scotia
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- Three New Cases of COVID-19 Government of Nova Scotia
- Nova Scotia increasing testing capacity as COVID cases ‘creep up’ CBC.ca
- N.S. reports three new COVID-19 cases Wednesday; concerns that cases could rise CTV News Atlantic
- Feb. 24 update: concerns for community spread grow as Nova Scotia reports three new COVID-19 cases TheChronicleHerald.ca
- Three new COVID-19 cases reported Wednesday HalifaxToday.ca
- View Full coverage on Google News
GameStop shares surge more than 100 per cent – CTV News
GameStop shares climbed rapidly and were halted twice for volatility ahead of the closing bell Wednesday. The gaming retailer’s stock was priced at $91.71 at market close, up nearly 104% from the previous day.
Shares were halted once around 3:40pm ET after climbing nearly 74%, and again just over 10 minutes later after gaining 104%. GameStop’s trading volume was roughly three times higher the five-day average for the stock, according to data provider Refinitiv.
Less than an hour after the closing bell, the stock was on the move again — gaining nearly 90% in after-hours trading.
Having déjà vu yet? The surge comes about a month after a wild GameStop trading frenzy caused its stock to jump around 1,600% in a matter of days, though it quickly fell from highs around $350. The late January surge was fueled by individual retail investors, many from the Reddit page WallStreetBets, some of whom believed the GameStop was undervalued and others who wanted to squeeze hedge funds that had shorted the stock.
The jump in GameStop also comes a day after the company announced its chief financial officer would resign next month to help “accelerate GameStop’s transformation,” which could fuel investors who believe in the long-term value of the retailer and its ability to shift from relying on physical stores to an e-commerce sales model.
AMC, another “meme stock” involved in the trading frenzy last month, also jumped around 18% on Wednesday.
Redditors on WallStreetBets cheered as GameStop soared. Posts on the subreddit included diamond emojis (a reference to holding a stock long term) and titles like “NEXT STOP IS THE MOON BABY” with rocket emojis, representing a belief that the stock will continue its upward trajectory.
Some GameStop investors have talked publicly about not selling their positions in the company during last month’s trading frenzy because they believe in its long-term potential.
Around 4pm, the entire Reddit site was down for many users, though the company did not identify the cause of the outage. Within about half an hour, Reddit said it had identified the underlying issue and “systems are beginning to recover.”
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