May 11, 2021

Volume XI, Number 131

Advertisement

May 11, 2021

Subscribe to Latest Legal News and Analysis

May 10, 2021

Subscribe to Latest Legal News and Analysis

Two Bitcoin ETFs Approved for Sale in Canada

In the past week, Canadian securities regulators approved the offering of the first two Canadian Bitcoin ETFs. By holding Bitcoin, the Canadian funds intend to provide investors with economic exposure to the US dollar and Canadian dollar price of Bitcoin through an ETF structure. For ETF investors, the structures have the potential to eliminate much of the friction associated with holding Bitcoin or investing in the asset directly. The ETF units have been conditionally approved for listing on the Toronto Stock Exchange. Additional details are available in the respective ETF prospectuses, which are publicly available here and here.

Under US securities laws, the Canadian ETFs generally cannot be offered for sale in the United States. The US Securities and Exchange Commission continues to approach the Bitcoin ETF market cautiously, having previously expressed concerns about the immaturity of the Bitcoin market and the potential for manipulation of that market. To date, the SEC has approved no Bitcoin ETFs for sale in the US.

As we recently noted, President Biden’s nominee for SEC chairman, Gary Gensler, comes to the SEC with a deep understanding of financial markets and a strong interest in the digital asset space. While Gensler has said little publicly about his intended agenda at the SEC, perhaps the recent actions in Canada will color his views on the propriety of a Bitcoin ETF product for US investors.

Advertisement
Copyright © 2021, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume XI, Number 49
Advertisement
Advertisement

TRENDING LEGAL ANALYSIS

Advertisement
Advertisement

About this Author

Scott H. Kimpel Capital Markets and Securities Practice Hunton Andrews Kurth Washington, DC
Partner

Scott brings in-depth knowledge of SEC policies, procedures and enforcement philosophy to each representation.

Scott regularly advises clients across a broad sector of the economy facing sensitive reporting, compliance and enforcement matters before the Securities and Exchange Commission and other capital markets regulators. His practice encompasses a wide range of matters involving the securities laws, mergers and acquisitions, corporate governance, regulatory enforcement, administrative law and public policy. Scott also leads the firm’s working group on blockchain and distributed...

202-955-1524
Advertisement
Advertisement