A Canadian company Accelerate Financial Technologies has filed a prospectus to list a new Bitcoin exchange-traded fund (ETF) in the Toronto Stock Exchange (TSX). The prospectus has been filed with the Ontario Securities Commission, with plans to list the ETF under the sticker “ABTC.”
The Calgary-based financial services firm said ABTC will be available for trade against the U.S. and Canadian dollars with a 0.7% management fee. However, the firm stated that the listing is subject to approval from TSX.
Accelerate Financial was also responsible for the introduction of the first BTC ETF in Canada when it received approval in 2017. The firm now wants to add more alternative investment products for its teaming users and investors.
Investment in Bitcoin ETF considered high-risk
Founder and Chief Executive Officer of Accelerate Julian Klymochko commented on the development. She said she has been a staunch supporter of the first BTC ever since the asset class was launched on the Canadian stock exchange in 2017.
Over the past few years, Bitcoin has been one of the major asset class performers. And looking at the cryptocurrency’s track record and future outlook, the company wants to provide investors the right exposure to the asset class through an easy-to-use ETF, Julian added.
However, investors have been warned about the new asset class, with many analysts saying that it’s viable for those who can withstand the fallout of market volatility. Accelerate Financial also warned about the high level of risk investors are taking when they consider investments in Bitcoin ETFs. “An investment in ABTC is considered high risk,” the company reiterated.
Struggles of Bitcoin ETF in the U.S
While Bitcoin ETF is growing gradually in other regions, the U.S. has not been particularly favorable in the U.S. The Securities and Exchange Commission (SEC) has rejected several applications for ETF in the past few years.
In February last year, the SEC turned down Wilshire Phoenix’s bit for Bitcoin ETF. It has previously rejected the ETF bid by the Winklevoss Twins.
The SEC has not rejected these filings because they don’t find them viable for the industry. Rather, the regulatory body is still not sure whether Bitcoin ETF will affect the digital assets market negatively. As a result, the body is withholding any filing until enough is known about the new asset class.
But Canada’s response to Bitcoin ETF and other related assets have been more positive than the U.S. The filing by Accelerate Financial is a clear sign that Canadian companies will be establishing their trades under a regulatory environment.