Financial Technologies recently filed with the Canadian securities regulator to launch a Bitcoin ETF. The Calgary-based financial services company has submitted a preliminary prospectus with the regulators.
A new Bitcoin ETF
The Accelerate Bitcoin ETF will be listed on the Toronto Stock Exchange with the ticker ABTC, if approved by the authorities. It will be offered in Canadian and US dollar and will come with a management fee of 0.7%. The company highlighted that the Toronto Stock Exchange has not approved its listing yet.
Accelerate has a history of working with Bitcoin. In 2017, the firm announced the first Bitcoin fund in Canada and plans to provide a wide range of alternative financial products to its customers in the future as well. It has now become one of the most prominent firms providing alternative financial investment solutions to Canadians.
The firm’s founder and CEO, Julian Klymochko commented on their journey and said,
“Ever since launching Canada’s first BTC fund in July 2017, I’ve been an advocate for the asset class. Bitcoin has been one of the best-performing asset classes on a 1-year, 3-year, 5-year, and 10-year basis, both absolute and risk-adjusted. Given BTC’s historical track record and future potential, along with its portfolio diversification properties, we are looking forward to offering investors exposure to the asset class in an easy-to-use, low-cost ETF.”
Bitcoin ETF’s history
In the US, several companies have tried to launch a Bitcoin ETF but to no avail. In 2018, the US Securities and Exchange Commission (SEC) rejected a Bitcoin ETF attempt by Gemini exchange operators the Winklevoss twins. It recently rejected a bid by Wilshire Phoenix as well.
However, Canada has been more accommodating of alternative financial products. Companies here are working on alternative assets within a clear regulatory environment. Accelerate Financial said that the nature of Bitcoin is speculative and the asset also has very high volatility. Therefore, the ABTC investment is not considered a complete investment program, and investors run the risk of losing some or all of their investments in the market. It also warned them that ABTC will be a high-risk investment vehicle.