Evolve Funds Group Gets Approval For Bitcoin ETF From Ontario Regulator

Evolve Funds Group had officially been granted regulatory approval through the Ontario Securities Commission. This decision could have long-lasting effects as institutional investors may now have an entry point which they can potentially utilize in order to access digital assets.

ETF Consists Of Two Ticker Symbols EBIT.U And EBIT

Announcing the news on February 16, Evolve said that the Ontario Securities Commission has successfully granted approval for its Bitcoin Exchange Traded Fund, the second one in North America.

The ETF has two different ticker symbols. The main variation is that one is meant for denominated units in the United States, namely the EBIT.U, and the other for Canadian denominated units, namely EBIT. Elaborating further, EBIT.U’s main purpose is to let us know about the daily price movements of Bitcoin in the United States currency (USD), and EBIT’s primary function is to supply unhedged exposure to Bitcoin’s daily price movement but in Canadian dollars (CAD).

The most notable effect of this will be that price data may be tracked by the fund via the use of Bitcoin Reference Rate provided by CF Benchmarks. This will result in the aggregation of data from numerous USD/BTC markets and into a ‘one a day’ benchmark-based system index.

The OSC provided an updated prospectus which gave us some insight as to what the fund’s plans for long-term investment may be. In the prospectus, we can observe that the main objective of the Evolve Fund’s investment plan may very well be to provide Unitholders with the much-needed exposure to the daily price movements of the United States dollar in its relation to Bitcoin. Additionally, the objective is to also minimize tracking errors via the utilization creation and redemption process benefits system.

Evolve thus plans to invest in long term holdings provided by the BTC and which were purchased via several platforms, most notably Gemini NuSTAR LLC, in order to accomplish this objective.

Sui Chung Offers His Opinion

The Chief Executive Officer of CF Benchmarks, Sui Chung, offered praise to Evolve, particularly their ability to provide investors with a product that is both easy to grasp and is readily available through pre-existing advisors as well as brokers.

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