Study on Volt Crypto ETF Should be Taken Care of by the Investors

The Investment Industry Regulatory Organization of Canada (IIROC) does not see it as big of a deal. It has just approved the listings of two ETFs that will track and trade security tokens of Blockchain platforms, among other crypto assets. It includes, of course, the crypto coin that many investors are waiting for – the Bitcoin ETF.

One of these funds has already started trading on Canadian stock exchanges and is invested in companies like Apple Inc., Microsoft Corporation, Amazon Biotech (the investment company that focuses on investing in innovative companies), and scores of other tech majors worldwide. Not surprisingly, the fund’s performance is all but impressive.

The other ETF is expected to start trading on North American exchanges later this year. However, the story is entirely different from the largest Canadian stock exchange – Toronto Stock Exchange (TSE). 

The latest data shows that for June 2019, around CAD 240 million was raised through various initial public offerings (IPO). Not surprisingly, the majority of them were tech firms and cryptocurrency-related companies. With this in mind, investors should pay closer attention to the new Bitcoin ETFs.

For decades, traditional financial institutions have been dragging their feet on blockchain technology development. This environment is beneficial for startups and enables them to gain a competitive edge. It is especially true for blockchain securities firms looking to lead in this area by becoming leaders in Blockchain-based VC investing.

Is It ETH vs BTC?

One of the companies that have reportedly already started trading on TSX is Evolve Funds Group Inc., a firm specialising in socially responsible ETFs.’ It just launched the Evolve blockchain ETF, which tracks companies related to blockchain technology and cryptocurrencies.

The fund also includes companies focused on mining crypto assets and those that engage in the development of blockchain technologies. Despite this, its performance is far from impressive. At the end of June, it was estimated at CAD 1 million compared to its launch price on TSX of CAD 10.7 million.

Investors should not be surprised by this result, as there is still a lot of uncertainty around cryptocurrency regulation in Canada and elsewhere. However, BlockTower Capital partner Ari Paul believes that a Canadian bank’s first Digital Asset Investment Fund (DAIF) will launch this month, but only on the TSX Venture Exchange. 

However, there is no guarantee that it would be a Bitcoin ETF, as many peers have already moved to crypto-focused company stocks. One such fund has already launched on Toronto Stock Exchange (TSX) in March this year. 

A Bitcoin ETF is Still Not A Sure Thing

Another crypto-related fund recently launched on TSX is First Trust Indxx Bitcoin Strategy ETF. This fund will invest in companies that focus on the storage of Bitcoin and other cryptocurrencies, blockchain technology development, and mining – an emerging market investment strategy.

However, the battle for the first Bitcoin ETF is not over yet. According to reports, NYSE Arca has filed for an exchange-traded fund (ETF) that will track companies focusing on the development and storage of blockchain technology.

This has been an excellent year for crypto startups as far as IPOs go. According to the latest data from June 2019, over CAD 240 million was raised through various IPOs. The majority were tech firms and cryptocurrency-related companies, with the rest interested in automobile manufacturing, telecoms, and real estate.

It is because there are still significant market risks associated with cryptocurrencies. Therefore, only large financial institutions are willing to risk investing in them at the moment.

Regulation is one of the most significant factors currently playing a role in facilitating ETF trading in platforms like the bitcoin evolution. The area has become particularly interesting for investors over the past year, with many companies filing for Bitcoin-based ETFs to be listed on exchanges worldwide. With competition heating up between Canada and New York, only time will tell what kind of impact these companies will have on the global blockchain securities market.

In conclusion, there is still a lot of uncertainty surrounding Canadian regulations and those from other countries worldwide. However, this does not mean that Canadian investors should be left behind in digital asset investment and trading opportunities.