Canadian investment fund manager Arxnovum Investments has submitted a prospectus for a new Bitcoin (BTCExchange Traded Fund, or ETF, in Canada.
The company will arrive on Monday archived a pile of preliminary documents for the Arxnovum Bitcoin ETF with Canada’s Ontario Securities Commission.
According to a preliminary long-term prospectus, Arxnovum plans to list its new Bitcoin ETF on the Toronto Stock Exchange. Listing is subject to TSX approval in accordance with the original listing requirements. “The TSX has not conditionally approved the Bitcoin ETF’s listing request and there is no guarantee that the TSX will approve the listing request,” Arxnovum noted.
The company said units of the Arxnovum Bitcoin ETF on TSX will be traded against the US dollar. The ETF includes Bitcoin and / or Bitcoin futures contracts and / or other derivative instruments. The new Bitcoin ETF may also contain cash, cash equivalents and / or other fixed-income securities, the company said.
According to the prospectus, the Arxnovum Bitcoin ETF will be backed by cryptocurrency exchange and custodian company Gemini, which will act as a sub-custodian for assets held outside of Canada:
Gemini Trust Company is the sub-custodian of the bitcoin held by the Bitcoin ETF. The SubCustodian is a trust company licensed by the New York State Department of Financial Services and qualified to act as the sub-custodian of the Bitcoin ETF for assets held outside of Canada in accordance with NI 81-102. “
Arxnovum’s CEO, Shaun Cumby, previously held an executive position at 3iq – the company that stated the first public Bitcoin fund in Canada in 2020. As Cointelegraph reported earlier, Gemini also delivered its crypto-custodian services for 3iq’s QBTC.U fund.
A Bitcoin ETF has been one of the most anticipated events in the crypto community in recent years. In 2018, the US Securities and Exchange Commission did the second application of the Winklevoss twins was rejected for a Bitcoin ETF.
According to a January report from JPMorgan Chase, the launch of a Bitcoin ETF could hurt the price of Bitcoin. On January 13, Cointelegraph reported that VanEck, the first company to ever apply for a Bitcoin ETF, is now facing a lawsuit from his former partner SolidX.