Canadian investment fund manager Arxnovum Investments has filed a prospectus for a new Bitcoin exchange-traded fund (BTC), or ETF, in Canada.
On Monday, the company filed a stack of draft documents for the Arxnovum Bitcoin ETF with Canada’s Ontario Securities Commission.
According to a long preliminary prospectus, Arxnovum plans to list its new Bitcoin ETF on the Toronto Stock Exchange. Listing is subject to TSX approval in accordance with its initial listing requirements. “The TSX has not conditionally approved the listing application for the Bitcoin ETF and there can be no assurance that the TSX will approve the listing application,” noted Arxnovum.
The company said shares of the Arxnovum Bitcoin ETF will trade on the TSX against the US dollar. The ETF will include Bitcoin and / or Bitcoin futures contracts and / or other derivative instruments. The new Bitcoin ETF can also hold 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 custody firm Gemini, which will act as a sub-custodian for assets held outside of Canada:
“Gemini Trust Company is the sub-custodian of bitcoin held by the Bitcoin ETF. The Sub-Custodian is a trust company licensed by the New York State Department of Financial Services and is qualified to act as a sub-custodian of the Bitcoin ETF for assets held outside of Canada in accordance with the Regulations. 81-102. “
Arxnovum CEO Shaun Cumby previously held a leadership role at 3iq – the company that listed Canada’s first public Bitcoin fund in 2020. As TBEN previously reported, Gemini also provided its crypto-custodian services. for the QBTC.U fund of 3iq.
A Bitcoin ETF has been one of the crypto community’s most anticipated events in recent years. In 2018, the United States Securities and Exchange Commission rejected the Winklevoss twins’ second request for a Bitcoin ETF.
According to a January report from JPMorgan Chase, launching a Bitcoin ETF could hurt the price of Bitcoin. On January 13, TBEN reported that VanEck, the first company to file a Bitcoin ETF application, was now facing a lawsuit from its former partner SolidX.