The Gibraltar Stock Exchange has a Canadian Bitcoin exchange-traded fund (ETF) listed. The financial product is aimed at institutional investors in Europe. That is what BTC Times reports.
It is the ETF of Canadian asset manager 3iQ. The ETF was first offered on the Toronto Stock Exchange (TXS).
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An exchange-traded fund (or index tracker) is an investment fund. An ETF has a simple purpose: to track an underlying market index. In the case of a bitcoin ETF, it follows the price of BTC as precisely as possible.
It is a way for more traditional investors to expose themselves to the bitcoin price, without having to buy bitcoin themselves.
According to 3iQ, this is one of the first bitcoin ETFs on a European stock exchange. Investors on the Gibraltar Stock Exchange can now also interfere in the financial world of bitcoin.
The founder of 3iQ, Fred Pye, has a large target group in mind: wealth funds, pension funds and „many other renowned financial institutions“.
According to Pye, parties in Europe have to do a lot of effort to be allowed to invest in bitcoin/crypto ETFs. On the stock exchange in Gibraltar, this is now easier and trusted way for all kinds of funds.
So when buying an ETF you are only involved in the price action of bitcoin. Managing and buying BTC lies with an ETF somewhere else. 3iQ has tied the American Gemini to keep the bitcoin of the fund neat and tidy.
Many investors are not (yet) occupied with what bitcoin is, but a rising price or many price fluctuations can be interesting for different groups of investors.
A more accessible market than ETFs is BTC’s futures market. Exchange-traded funds are highly regulated financial products. This does not apply to all futures.
Due to increasing rules worldwide, more and more bitcoin markets are being tackled. A U.S. regulator and the Treasury are going after one of the largest bitcoin derivatives exchanges in the world: BitMEX with $2 billion of Bitcoin in cash sued by watchdog US.