Purpose is the first direct custody bitcoin ETF in the world.

The Ontario Securities Commission has cleared for launching the Purpose Bitcoin ETF. Purpose will be the first in the world to invest directly in physically settled Bitcoin. It will therefore be similar to gold or silver ETFs which are backed by precious metals. Purpose, however, will be backed by physically settled holdings in bitcoin. (Intrado GlobeNewsWire)

Cidel Trust Company, a subsidiary of Cidel Bank Canada, is designated as the fund’s custodian. Gemini, the crypto company founded by investors Cameron and Tyler Winklevoss, is serving as the fund’s sub-custodian.

Now a simple route for investors to bitcoin investments

“Bitcoin has been gaining popularity among individual and institutional investors for years now, however, it remains a difficult asset to gain efficient and secure exposure to,” said Som Seif, founder and CEO of Purpose Investments. “Purpose Bitcoin ETF will change the landscape for investors by giving them a simple, efficient and affordable way to directly access the cryptocurrency.”

The ETF will trade on the Toronto Stock Exchange under the ticker symbol of BTCC.

Will the U.S. follow?

The Ontario regulatory authority bit the bullet and cleared the first bitcoin ETF in North America. Crypto aficionados are reading this as a very positive sign that augurs well for the long-awaited clearance of a bitcoin ETF in the US.

Multiple applications for bitcoin ETFs have so far been rejected by the US SEC.

Meanwhile, bitcoin hit a new all-time high yesterday on news that Mastercard (NYSE: MA) and BNY Mellon (NYSE: BK) were adopting bitcoin for payments and custody respectively.

Furthermore, SEC commissioner Hester Peirce, who is fondly also referred to as “Crypto Mom,” made waves with her remark on Wednesday that the US markets were ready for exchange-traded products tied to bitcoin.

Coin Desk quoted a tweet by Eric Balchunas, a senior analyst at Bloomberg, as follows:

“Gotta love their [Canada’s] liberal regulators, or perhaps they’re normal and SEC [Securities and Exchange Commission] too conservative. Either way, U.S. usually follows shortly after.”

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