Advertisement

First Bitcoin ETF in North America launches on TSX amid crypto price boom

Click to play video 'Tesla accepting bitcoin as payment will help normalize cryptocurrency, analysts says' Tesla accepting bitcoin as payment will help normalize cryptocurrency, analysts says
Tesla said on Monday it had invested about US$1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, a move analysts say will help normalize cryptocurrency – Feb 8, 2021

North America’s first Bitcoin exchange-traded fund began trading on the Toronto Stock Exchange Thursday.

The ETF, developed by Toronto-based Purpose Investments, was approved for trading last week by the Ontario Securities Commission.

Read more: Bitcoin’s rising popularity puts pressure on central banks to issue digital currency

Purpose’s ETF is the first of two Bitcoin ETFs expected to launch on the Toronto Stock Exchange this week.

Click to play video 'From CERB to Bitcoin: Your latest personal finance questions answered' From CERB to Bitcoin: Your latest personal finance questions answered
From CERB to Bitcoin: Your latest personal finance questions answered – Feb 11, 2021

The ETFs will allow retail investors to gain access to Bitcoin investments without actually owning the asset directly.

Story continues below advertisement

The launch of Purpose’s ETF comes amid a surge in the prices of Bitcoin and other cryptocurrencies, with Bitcoin hitting an all-time high of around C$66,500 on Wednesday.

Regulators had previously held off on approving a Bitcoin ETF, citing the potential for market manipulation and concerns about how to store the assets securely.