Canadian funding fund supervisor Arxnovum Investments has filed a prospectus for a brand new Bitcoin (BTC) exchange-traded fund, or ETF, in Canada.
On Jan. 11, the corporate filed a stack of preliminary paperwork for the Arxnovum Bitcoin ETF with Canada’s Ontario Securities Commission.
According to a preliminary lengthy type prospectus, Arxnovum plans to record its new Bitcoin ETF on the Toronto Stock Exchange. The itemizing is topic to the approval of the TSX in accordance with its unique itemizing necessities. “The TSX has not conditionally approved the listing application of the Bitcoin ETF and there is no assurance that the TSX will approve the listing application,” Arxnovum famous.
The firm mentioned that items of the Arxnovum Bitcoin ETF will commerce on TSX towards the United States greenback. The ETF will embrace Bitcoin and/or Bitcoin futures contracts and/or different by-product devices. The new Bitcoin ETF may maintain money, money equivalents and/or different fixed-income securities, the corporate mentioned.
According to the prospectus, the Arxnovum Bitcoin ETF can be backed by cryptocurrency alternate and custody agency Gemini, which is able to act as a sub-custodian for property held outdoors of Canada:
“Gemini Trust Company is the sub-custodian of the bitcoin held by the Bitcoin ETF. The SubCustodian is a trust company licensed by the New York State Department of Financial Services and is qualified to act as a sub-custodian of the Bitcoin ETF for assets held outside of Canada in accordance with NI 81-102.”
Arxnovum’s CEO Shaun Cumby beforehand held a senior place at 3iq — an organization that listed the primary public Bitcoin fund in Canada in 2020. As Cointelegraph beforehand reported, Gemini was additionally offering its crypto custodian providers for 3iq’s QBTC.U fund.
A Bitcoin ETF has been probably the most anticipated occasions within the crypto group lately. Back in 2018, the United States Securities and Exchange Commission rejected Winklevoss’ second application for a Bitcoin ETF.
According to a January report from JPMorgan, the launch of a Bitcoin ETF may harm Bitcoin’s worth. On Jan. 13, Cointelegraph reported that VanEck, the primary firm to ever file for a Bitcoin ETF, is now dealing with a lawsuit from its former companion SolidX .