The monetary regulatory executive of Canada's most populated province Ontario has given its approval to a Bitcoin ETF (exchange-traded fund).
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ETF is a security category that involves a combination of securities—such as stocks. However, they can invest in numerous industry fields or use different strategies. The Security Commission disclosed the news on Thursday.This case of Bitcoin ETF getting authorized is unprecedented in North America.
OSC submitted the paper under a Multilateral Instrument passport policy in many areas of Canada. The rules refer to 12 provinces: from British Columbia through Manitoba, Yukon, and Nunavut.According to the announcement, the Purpose Bitcoin ETF is an alternative mutual fund that "invests in and holds substantially all of its assets in long-term holdings of the digital currency bitcoin." Cidel Trust Company, a subsidiary of Cidel Bank Canada, is designated as the fund's custodian.
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Although various close-ended BTC funds have been listed on the Toronto Stock Exchange, they are different from ETFs. Closed-end funds issue assets at their IPOs (initial public offerings) and reopenings. On the other hand, ETF issue units continuously.