Bitcoin seems to be diverging on its price movement after two recent Canadian-based Bitcoin ETFs are slated to be launch in the very near future.
Purpose Investments and Evolve Funds Group have launched what is arguable the world’s first two Bitcoin ETFs on the Toronto Stock Exchange (TRX). Both Bitcoin ETFs are physically settled. This means every dollar that buys a share in the ETF will literally buy a dollar worth of Bitcoin.
Launching a Bitcoin ETF is an important milestone for the cryptocurrency market. Essentially, it opens a door for any retail investors, companies, institutions and anyone with a trading account to get into the frothy world of cryptocurrencies.
Overnight, the addressable market for any retail trader to get into Bitcoin would simply be buying a share of the Bitcoin ETF. Instead of sharing with a new Bitcoin-enthusiast on how to get his or her first Bitcoin, one can simply now go to TRX and buy a share in the Bitcoin ETF. It cannot get simpler than this.
This lowering of Bitcoin acquisition friction has created an optimistic outlook for Bitcoin and only Bitcoin. As of now, there are no other known application for ETFs outside of Bitcoin.
We suspect the U.S. may soon approve its own Bitcoin ETF in order to prevent capital from flighting to Canada. When this happens, the beta between Bitcoin and the rest of the altcoin market may increase substantially.
[ Read more: U.S. Bitcoin ETF Feels Closer Than Ever ]
