Canada okays second-ever bitcoin ETF just days after approving the first crypto fund

• Canada's financial regulator approved the second publicly traded bitcoin ETF in North America.
• The Evolve Bitcoin ETF will trade on the Toronto stock exchange.
• The approval comes just days after Canada signed off on the first North American publicly traded bitcoin fund, the Purpose Bitcoin ETF.
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The Ontario Securities Commission (OSC) approved the second-ever bitcoin ETF from Evolve Funds on Tuesday just days after approving the Purpose Bitcoin ETF on February 12.

The Evolve Bitcoin ETF seeks to provide investors with exposure to the daily price movements of the US dollar price of bitcoin. Crypto enthusiasts see an exchange-traded fund as a way for more retail investors to gain price exposure to bitcoin. An ETF trades on the stock market, and investors won't need to set up a crypto wallet to invest.

The Evolve ETF will trade on the Toronto stock exchange under the tickers "EBIT" and "EBIT.U."

The Canadian regulator's approval of two bitcoin ETFs has boosted optimism that the US Securities and Exchange commission will finally approve a similar vehicle in the US. Several firms have filed, but have so far failed to gain approval, for a bitcoin ETF in the past, with the SEC typically citing security concerns.

"Now that the OSC has said that if a product is well constructed enough the crypto market is sufficiently mature for these types of financial products, the industry's attention inevitably turns south of the border to the US," said Sui Chung, CEO of CF Benchmarks. "Will the SEC finally decide that the time is right for a Bitcoin ETF?"

The Evolve bitcoin ETF will track the regulated Bitcoin Reference Rate from CF Benchmarks. The fund will directly own bitcoin on the bitcoin blockchain in a cold wallet, and the Fund's holdings will be priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for bitcoin denominated in US dollars, according to a press release.

Cidel Trust Company will be the custodian of the ETF while Tyler and Cameron Winklevoss' Gemini Trust Company will be the sub-custodian. Ernst and Young will be the auditor of the fund.