In Canada, Spot Bitcoin ETFs Have Been Working for Years

Reliable analog to direct exposure

The SEC has continued to argue that a spot bitcoin ETF could be dangerous for investors while, at the same time, deciding to greenlight bitcoin futures ETFs and the direct buying and selling of digital assets on exchanges. But in Canada, it has been shown that spot ETFs have been very efficient at mimicking direct portfolio exposure to bitcoin without the added uncertainty and volatility of the futures markets and having to deal with the operational opacity of unregulated exchanges.

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We can’t overstate the importance of accessibility when we talk about the potential for an asset to achieve mainstream acceptance. A 2021 study by the Bank of Canada stated that a rise in bitcoin investment in Canada seemed highly correlated with the advent of easy-to-use mobile exchanges. And based on the hundreds of millions of dollars that have flowed into the top three Canadian bitcoin ETFs, it’s reasonable to assume that the accessibility inherent in a bitcoin-backed financial asset fully integrated into the legacy financial system is appealing to investors.