The second Bitcoin Fund in North America (BTC) received regulatory approval on Tuesday, making it another potential entry point for institutional investors in digital assets.
Less than three weeks after the initial Bitcoin ETF prospectus was filed, Evolve Funds Group Inc announced on Tuesday that the fund has been approved by the Ontario Securities Commission or OSC.
ETF has two indicator symbols: EBIT for Canadian units and EBIT.U for US units. EBIT is said to provide “undiscovered exposure to daily price movements” of Canadian dollar bitcoins, while EBIT.U provides exposure to daily US dollar price movements.
Specifically, the fund will track price data using its bitcoin CF Benchmarks, which combines data from multiple BTC / USD markets into a one-day reference index.
Frida’s updated prospectus forwarded to OSC sets out the fund’s investment objectives:
“The investment goal of Evolve Fund is to enable unit holders to be exposed to daily fluctuations in the price of the bitcoin dollar with minimal tracking errors, while taking advantage of setup and redemption processes.”
To achieve this goal, Evolve Fund will invest in long-term BTC assets acquired through Gemini NuSTAR LLC and other platforms.
The prospectus has been filed under the Passport System, which gives access to the fund in all 10 provinces and three territories of Canada.
Sui Chung, CEO of CF Benchmarks, told Cointelegraph that the Evolve ETF “has developed an easy-to-understand product that provides investors with an easy-to-understand product available through existing bitcoin ownership brokers and consultants.”
“Using an adjustable bitcoin reference rate from a CF observer, the ETF tracks the value of bitcoins, and because the structure allows ETF shares to be created and redeemed on a daily basis, investors don’t have to pay high premiums in the secondary market.”
Evolve is the second Bitcoin ETF approved by the Canadian Securities and Exchange Commission this month. The Bitcoin ETF target was approved last week and became the first truly stable ETF in North America.
The ETF product was approved by 3iQ in Canada last year and is currently listed on the Toronto Stock Exchange. However, unlike the Evolve ETF, the EiQ Fund does not continually issue new shares.