Bitcoin ETF from 3iQ and Coinshares goes live in Canada

According to the announcement published by 3iQ, trading for the 3iQ Coinshares Bitcoin ETF, started on the Toronto Stock Exchange today. The fund’s units are trading in U.S. dollars under the ticker “BTCQ.U” and Canadian dollars under the ticker “BTCQ.” Trading opened at $11.89 for BTCQ before dipping to $11.51 and recovering, while units of the Bitcoin ETF in U.S. dollars opened at $9.39 and have since risen 0.4% at the time of publication.

Canadian investment fund manager said the ETF was aimed at providing investors exposure to Bitcoin based on changes in the values of the cryptocurrency  in dollars, and the opportunity for long-term capital appreciation. The Bitcoin ETF’s management fee is 1%, but 3iQ said it would absorb any other expenses in excess of 0.25%.

Canada has apparently taken the lead on launching crypto ETFs in North America given the U.S. SEC's reticence in approving local funds. Though many are expecting pro-crypto Gary Gensler’s recent confirmation as SEC chair. 3iQ backed the launch of Canada’s first Bitcoin fund, and filed the final catalogue for the Bitcoin ETF earlier this month.

Including 3iQ’s and Coinshare’s fund, regulators in the country have approved several crypto ETFs. Last week, they gave the green signal to Ether ETFs from Purpose Investments, Evolve Funds Group, and CI Global Asset Management to start trading on the local exchanges. Both Purpose Investments and Evolve Funds Group had previously launched Bitcoin ETFs, attracting around $1.3 billion and $100 million in AUM.

Canada’s first Bitcoin fund, launched by 3iQ in April 2020, has grown to over $1 billion. Together, Coinshares and 3iQ have $7 billion in assets under management.