BitcoinMarkets

Canadian Bitcoin ETF Surpasses $100M

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The Bitcoin Fund (TSX:QBTC.U), an exchange-traded fund (ETF) operated by Canadian digital asset manager 3iQ that trades on the Toronto Stock Exchange, has cracked the $100 million milestone.

The Bitcoin Fund currently has 7.51 million stocks outstanding, according to 3iQ. Following its 4.14% increase in the last 24 hours, its market cap surpassed $100 million. 

The stock price of The Bitcoin Fund on the Toronto Stock Exchange. Source: Google Finance

A Major Milestone for 3iQ

On October 19th, 3iQ announced the trading launch of the Bitcoin Fund's Class A Units on the Toronto Stock Exchange under the symbol “QBTC.”

Since the fund operates as an ETF, investors trading in Canada’s stock market can utilize it in order to gain exposure to Bitcoin through brokerage accounts. At the time, 3iQ CEO Fred Pye said:

Finally, Canadian investors have the opportunity to trade The Bitcoin Fund in their native currency and through their locally dominated accounts, thus eliminating the interminable costs and albeit hassle of converting currencies.

The day after the Class A Units commenced trading, The Bitcoin Fund saw a sharp rise in the stock price, causing its market cap to exceed $100 million and triggering reactions from industry representatives such as Gemini CEO Tyler Winklevoss, who called the developments a "big milestone" for the fund.

Throughout October, following high profile investments of the likes of Square and MicroStrategy, the fund's market cap has increased noticeably, gaining 8.95% over the course of three weeks.

Institutional Demand Is Rising Overall

Institution-focused exchanges, futures markets, and funds, including 3iQ, are seeing a clear increase in appetite for Bitcoin.

According to market analytics firm Skew, open interest on CME’s Bitcoin futures market rose sharply on October 20th.

“CME Bitcoin futures open interest rose sharply yesterday, adding nearly 1,500 contracts on the October expiry,” researchers at Skew wrote.

The total open interest of CME Bitcoin futures. Source: Skew

The rising open interest of CME's Bitcoin futures is particularly optimistic given that CME’s Commitment of Trader report found that the number of long contracts held by institutions recently rose to an all-time high.

Coincidentally, since Square publicized the allocation of 1% of its capital to Bitcoin, the leading cryptocurrency has risen by more than 15% against the U.S. dollar.

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Joseph Young is a financial analyst based in South Korea. He has covered Bitcoin and the crypto market since 2013. He regularly contributes to the BTC Times, Forbes, and Cointelegraph.