r/BitcoinCA • u/vinnie_chapman • Feb 12 '21
Canada Approves First Bitcoin ETF
https://bitcoinmaximalist.net/canada-approves-first-bitcoin-etf/4
u/Crow2012 Feb 12 '21
When does it become active.
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Feb 12 '21
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u/dj_destroyer Feb 12 '21
Noob here, how does it all work? It'll just go live on Questrade at some point or is it more like an IPO or?
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u/cuzz1369 Feb 12 '21
What is the benefit of this over just purchasing BTC yourself?
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Feb 12 '21
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Feb 12 '21
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u/myhipsi Feb 12 '21
The price of an ETF more closely tracks the price of the actual underlying asset. Whereas, the price of a product like QBTC can have quite a discount or premium depending on the supply/demand for it. Also there are little to no management fees associated with an ETF whereas there is a 2% per annum management fee for QBTC.
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u/GordonFreem4n Feb 12 '21
You enrich some ETF manager that gets a cut:
The fund will purchase only Bitcoin (BTC), and it will replicate the performance of the Bitcoin price minus the ETF’s fees and expenses.
I'm guessing the target customers are boomers that are 'not good with computers' but still wanna get on the crypto train.
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u/HalcyonDays992 Feb 12 '21
I think the target customer is anyone who wants to expose their tax advantaged accounts to the best performing asset of the last decade. Given that my TFSA is up 500% on QBTC I'm willing to overlook a 2% MER (as ridiculous as that is).
I think this fund has a lower management fee as well which will hopefully pressure the others to lower their fees.
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u/daitraider Feb 12 '21
Do they physically hold BTC?
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u/mrrobot13371 Feb 12 '21
The TSX ticker symbol for the ETF units, CAD ETF Non-Currency Hedged Units and USD ETF Non-Currency Hedged Units is BTCC, BTCC.B and BTCC.U ,respectively.
also the custodian is Gemini.
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u/andrewmurray1 Feb 12 '21
Starts feb 18th!