Ever since the world’s first cryptocurrency-based ETF was launched in Switzerland in 2018, regulators in subsequent countries have looked more and more favorably toward virtual assets. The path started by the Helvetians was eagerly replicated, making 2021 a truly explosive year for newly launched funds.
The U.S. has finally caught up
The United States is the largest economy in the world, and the US dollar is also the world’s reserve currency. The whole range of products is settled in it. Moreover, the USA is the cradle of technology, where many cryptographic projects have their beginnings and development. Therefore, it is not surprising that a potential crypto fund just in this country has a particularly important dimension. After many years of discussion and anticipation, and after many rejected proposals, the first Bitcoin ETF was finally launched on the futures market on October 19, with ProShares as the provider. Shortly thereafter, two more funds were launched, named the Valkyrie Bitcoin Strategy ETF and the VanEck Bitcoin Strategy ETF. All of them are now extremely popular, and more are already lining up for approval. Unfortunately, the market is still waiting for the SPOT ETF to be approved by the US regulator. So far, all applications in this matter are regularly rejected, or decisions are dragged out until next year.
Another fund in Canada
The situation in the States is being eagerly exploited by its neighbors, who seem to see more potential in Bitcoin. Of the two largest countries in North America, it is Canada that boasts the presence of a market SPOT ETF on the largest cryptocurrency. Moreover, the Canadians are relentless in their efforts to add more in the future. Thus, in February this year, the Purpose Bitcoin ETF and the Evolve Bitcoin ETF were opened successively. For investors from this region of the globe, the Canadian offering is highly interesting.
The Brazilian market and ETFs there are interesting, among which the first carbon-neutral fund has appeared, and it is managed by Hashdex. The ETF here tracks NASDAQ Bitcoin quotes. The management company works with German carbon assessment firm CCRI to estimate the carbon footprint of all BTC purchased by the fund. The company then purchases carbon credits and invests in carbon-neutralizing projects to offset a carbon footprint limited to 0.15% of the total value of assets locked up in the fund.
Even tiny Guernsey has an ETF
The popularization of crypto funds is highlighted by the tiny island of Guernsey, where a Bitcoin ETF is also now available through Jacobi Asset Management. It is one of 80 such instruments opened in 2021. Considering that in 2020 there were only 35, we are talking about a real boom here.
What will 2022 bring? There are many indications that the observed trend will continue!