Canada was the first to list the listed funds (ETF) of Bitcoin, which is currently offered by Purpose Investments, Evolve, Ninepoint, CI Galaxy, and 3iQ CoinShares. Purpose leads with $900 million, closely followed by 3iQ CoinShares with $860 million.
In Brazil, we have the managers Hashdex and QR Capital, with 280 million dollars in total, considering the multi-currency funds. These figures do not consider Trust Funds and the like, which include Grayscale and XBT Provider, WisdomTree and ETC Group.
After all, what is the advantage of the ETF?
The ETF eliminates the risk of the administrator, the intermediary responsible for the fund. Furthermore, it allows transforming the position into the equivalent slice in Bitcoin. In short, even if it is listed or trades below fair value, the investor is not at risk.
How did Grayscale become a leader?
Compared to the ETF, Grayscale’s product is rubbish, starting at the rate of 2% per year. Then only institutional investors can buy directly from the issuer. However, it was released in September 2013, and listed on the stock exchange in 2015.
In short, for many years he surfed alone, and on top of that, restricting access to small investors created a premium, bringing even more flow.
What changes with the US ETF?
In practice, the operation, security and fees are very similar to other ETFs. However, taxation of overseas investment is more complex, and potentially higher, so there is an incentive for the domestic market.
Why invest indirectly?
The vast majority of investment funds cannot buy real estate, gold, or Bitcoin directly. For this, there are real estate funds and equity funds, offering indirect exposure.
Usually, retirement funds are even more restricted, and do not allow contributions to structures that depend on the administrator’s risk, such as Grayscale’s Trust.
When will the ETF be approved in the US?
In fact, the first registration request came from the Facebook twins in July 2013, that’s right, 8 years ago. Numerous other requests were vetoed, or virtually ignored, by the SEC regulator.
However, that all changed last Tuesday, when the new SEC chairman, Gary Gensler, said that the entity would treat ETF applications with indirect exposure differently. That is, those who buy BTC futures, Grayscale GBTC shares, or even Canadian ETF.
The market took a few days to “digest” the news, but woke up when ProShares and Invesco registered new ETF orders within this suggested pattern. In other words, now go! 6 months or 18 months? I can’t say, but in this range.