The steady price increase of Bitcoin this week has been attributed to the approval of the first Canadian Bitcoin Trust. The fund that is managed by First Block Capital will be regulated by the British Columbia Securities Commission (BCSC).
The first Canadian Bitcoin Trust
The fund will allow people to profit from Bitcoin without actually having to own any. The fund by First Block Capital was already launched in July but was only recently approved by the BCSC. First Block Capital is the fund’s registered fund manager and the BCSC acts as a principal regulator. The fund is expected to operate in the current Canadian regulatory environment. Exact details of these conditions are not known. This is great news for investors in Canada since they can invest in Bitcoin the same way they would in a commodity.
Canadians benefitting from the Bitcoin Trust
Canadian investors can now buy a stake in a Bitcoin pool that is managed by First Block Capital. So, as the price of Bitcoin steadily increases, so will their investment. Another advantage for investors is that they do not have to concern themselves with issues such as exchanges, transfers, private keys etc.
In a statement, the BCSC welcomed other companies in British Columbia to follow suit. They are willing to help other cryptocurrency investment funds adhere and meet regulatory compliance standards. Apparently, the BCSC Tech Team is ready to assist other companies to comply with securities regulation. In the same statement, the BCSC indirectly issued a warning by saying that it will save these companies time and potential costs to comply with these regulations.
All eyes on SEC
The news puts Canada ahead of the United States when it comes to regulating the cryptocurrency industry. 30 September is an important day on all cryptocurrency investors and traders’ calendar as the US Securities and Exchange Commission (SEC) will announce if they will be allowing similar Bitcoin funds such as the one in Canada. Many have tried to get the SEC to approve a similar product but to date has been unsuccessful. For example, in March this year, the SEC denied an application by the Winklevoss brothers for a Bitcoin fund. But all is not lost as 30 September is fast approaching.
The cryptocurrency community seems to be divided between whether or not an approved ETF by the SEC is good for the industry or not. Whilst some welcomes the industry being regulated and less volatile, others feel that more press is unwise.
Meanwhile, the price of Bitcoin and Ethereum has increased, according to Coinmarketcap. The overall cryptocurrency market cap soared with $12 billion. Ethereum picked up 18% and Bitcoin with 3.17%.