In a move reaffirming their openness to bitcoin in traditional markets, Canadian securities regulators approved a third bitcoin exchange-traded fund – the CI Galaxy Bitcoin ETF – that will launch Tuesday on the Toronto Stock Exchange. The green light comes after Purpose Bitcoin ETF and Evolve Bitcoin ETF, which launched last month.

Why should we care?
Canada’s moves signify that bitcoin is gaining deeper acceptance in traditional markets. Bitcoin ETFs are a way of investing in bitcoin without actually holding bitcoin, thereby making it a more accessible asset to investors who would otherwise be wary of holding the cryptocurrency. Early indications following the launch of bitcoin ETFs in Canada are positive: The Purpose Bitcoin ETF attracted more than $470M while the Evolve Bitcoin ETF has just over $54M in assets under management. Despite a door open in Canada to bitcoin ETFs, U.S. regulators have thus far employed a more cautious approach. For example, bitcoin ETF applications in the U.S. have repeatedly been rejected by the Securities and Exchange Commission (SEC). However, some industry players feel the change of administration could be an opportunity: In January, the crypto subsidiary of investment firm Valkyrie Investments filed an application for a bitcoin ETF with the SEC after withdrawing a prior application in 2019.