Canada's second Bitcoin ETF will start trading on the Toronto Stock Exchange (TSX) today, as per a release shared with Decrypt. Canadian ETF operator Evolve, which manages over $1.7 billion and has been in operation since 2017, will offer its first-ever Bitcoin product under the “EBIT” ticker. Trading will go live when the market opens at 9.30 AM ET.
EBIT is a Bitcoin-based ETF that will hold actual Bitcoin—custodied by New York-based crypto fund Gemini—for each share purchased or traded by investors, instead of merely tracking the asset’s prices via financial instruments, such as derivatives or futures contracts. That means investors will directly own Bitcoin when they invest in EBIT.
The offering makes it easy for new investors to enter the crypto market. “Investors may participate in Bitcoin (markets) via their brokerage accounts,” remarked Raj Lala, the president and CEO of Evolve. He added that the asset had already made its mark as a reliable store of value that was uncorrelated to other major asset classes.
EBIT’s daily net asset value will be based on the Bitcoin Reference Rate provided by the Chicago Mercantile Exchange and CF Benchmarks, which is a benchmark index price for Bitcoin denominated in US dollars.
The ETF itself will be available in both Canadian dollar-denominated units (as EBIT) and in US dollar-denominated units (EBIT.U). Both units are “unhedged,” meaning any downside from Bitcoin prices is not protected with other financial products or positions.
With the launch, EBIT becomes the second regulated Bitcoin product offered to Canadians, and the first is already a success.
When the “Purpose Bitcoin ETF” launched yesterday, it traded over $165 million during the day. Out of that volume, $80 million came in the first hour of trading itself, a sign of the huge demand for Bitcoin.
Meanwhile, Bitcoin is blazing its own trail ahead. On a few exchanges, it surged to over $53,000 this morning, setting a new all-time high. But it has yet to confidently break that mark.