First Bitcoin ETF in North America debuts on TSX as cryptocurrency prices surge

BUSINESS

First Bitcoin ETF in North America debuts on TSX as cryptocurrency prices surge

Published Thursday, February 18, 2021 3:39PM EST Last Updated Thursday, February 18, 2021 5:59PM EST

A sign advertises a Bitcoin automated teller machine, ATM, at a shop in Halifax on Wednesday, February 4, 2020. (THE CANADIAN PRESS/Andrew Vaughan)

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TORONTO -- North America's first Bitcoin exchange-traded fund began trading on the Toronto Stock Exchange today.

The Purpose Bitcoin ETF, developed by Toronto-based Purpose Investments, was approved for trading last week by the Ontario Securities Commission.

Units of the ETF closed at $10.25 on the S&P/TSX composite index, up 25 cents from their opening bid.

It is the first of two Bitcoin ETFs expected to launch on the Toronto Stock Exchange this week.

The second ETF, from Evolve Funds Group Inc., is set to begin trading on Friday under the ticker symbol EBIT.

The ETFs will allow retail investors to gain access to Bitcoin investments without owning the asset directly.

The launch of Purpose's ETF comes amid a surge in the prices of Bitcoin and other cryptocurrencies, with Bitcoin hitting an all-time high of around C$66,500 on Wednesday.

Regulators had previously resisted the approval of a Bitcoin ETF, citing the potential for market manipulation and concerns about how to store the assets securely.

This report by The Canadian Press was first published Feb. 18, 2021.