The first bitcoin (BTC) exchange-traded investment fund (ETF) designed by the Canadian investment firm Purpose Investments, entered the Latin American market in early March, after going public on the Santiago de Chile Stock Exchange.
According to a statement from the Santiago Stock Exchange, dated March 3, the brokers in that country were informed of the registration of the new instrument that has been traded on the Toronto Stock Exchange (TSX) since February 18.
According to the document, between the Santiago Stock Exchanges and the Canadian Stock Exchanges, there has been an agreement since 2014 that allows “Canadian securities listed on TSX to access the double listing on the Venture Market of the Santiago Stock Exchange.”
In that sense, they indicate that the shares or quotas of the Canadian ETF can be quoted and traded in US dollars by the general public. The instrument is registered under the mnemonic code BTCCL.
In Canada, the bitcoin ETF raised $ 421 million within two days of its launch. Bloomberg ETF specialist, Eric Balchunas, indicated that these amounts represent a record in relation to the volumes traded of traditional ETFs, both in Canada and in the United States, as reported by INA.
“Canada’s record would rank in the top 5 ETFs, and also top in the US. Average ETF volumes are less than $ 20 million,” said Balchunas.
On March 18, Purpose Investments announced that the ETF had exceeded USD 1 billion in assets under its management.
“Reaching this milestone so quickly demonstrates that investors are seeking convenient and secure access to crypto currencies and shows their confidence in our ETF as the primary vehicle for that exposure,” said Some Seif, Purpose Founder and CEO.
The ETF is designed to provide investors with exposure to bitcoin, through indirect investment in that crypto currency, with physical settlement. They are also traded on traditional markets rather than on crypto-asset exchanges.
Purpose works with Gemini Trust Company, owned by the Winklevoss brothers, as sub-custodian and CIBC Mellon Global Securities Services Company as fund manager.
Bitcoin ETFs seek spaces in Latin America
With the arrival of the Purpose Investments ETF in Chile, the institutional market in the region opens its arms to crypto currencies.
In fact, recently INA announced the launch of the first ETF made in Latin America, created by the crypto asset manager Hashdex and which will be listed on the Brazilian Stock Exchange.
This product tracks the Nasdaq Crypto index, developed by NASDAQ and Hashdex, and is presented as an option for institutional investors to gain exposure to the crypto currency market.