Connect with us

News

$14M Bitcoin fund gets listed on Toronto stock exchange

Being listed on the Toronto Stock Exchange will further improve the reputation of digital assets.

bitcoin
Image: Unsplash

Canadian investment fund manager, 3iQ said that The Bitcoin Fund started trading on Toronto Stock Exchange. The fund trades ETP products and has two sorts of shares, Class A, targeted at all investors, and Class F, aimed at institutions. All Class A shares cost around $14 million as 3iQ president and CEO Fred Pye said. It is a good way for traditional investors to get to know this class of assets.

MVIS Managing Director Thomas Kettner said that being listed on the Toronto Stock Exchange will further improve the reputation of digital assets. Toronto Stock Exchange, the largest one in Canada, also lists other representatives of digital industries, such as Galaxy Digital, Hut8, Horizon “blockchain ETF”.

Canada’s approach to the crypto revolution

During the lockdown, the country is focused on the digital economy. Crypto could be the main drive during the lockdown. Experts are waiting for a big recession but the crypto revolution could help Canadians to fight recession successfully. The Crypto revolution in Canada started back in 2017.

Bitcoin was the biggest currency that took over the world. 2017 was a breakthrough year for Bitcoin and Canada’s team working on the country’s financial plan saw a true potential. Unlike biggest economies (US, UK, China, and Russia), Canada decided to allow local companies to receive and send Bitcoin payments. The government even included the crypto revolution as the main target in the digital charter.

A first big wave of crypto revolution impacted on iGaming industry. The gaming industry is very big in Canada and eventually, it’s the first business sector to face technological advancements. During the Bitcoin ‘outbreak’, local casinos were allowed to install Bitcoin payments. Canadian iGaming platforms got attention from international players who wanted a free transaction system from banks and governments.

Bitcoin iGaming become a hit and Canadian o0nline casinos were on top of the charts. Canadian online casino with real money got a chance to approve Bitcoin payments, so players had a weapon of choice – paying with real money or crypto. Bitcoin gaming is very popular nowadays and Canada became the trendsetter. Giving a legal space to crypto is the biggest decision from the government and it will lead to a better economical situation soon.

In Canada They’re ‘Essential,’ In Argentina, They’re Shut Down: Bitcoin Miners Reckon with COVID-19

The bitcoin mining industry is changing drastically under the circumstances of the lockdown. Many miners hope that the value of bitcoin will increase after the bitcoin halving will happen sometime in May. However, this is not an ideal circumstance to hope for improvements when you are operating a business. The loans that used bitcoin as leverage were liquidated in March and a lot of miners had to stop their mining machines, said F2Pool business director Thomas Heller, leading one of Asia’s largest bitcoin mining operations.

It is not easy to tell which private mining companies are in trouble because not all of them have public records. One of those that do have public records is a Canadian start-up Hut 8. The start-up owes around $14 million to Genesis Global Capital, a company affiliated to the American crypto giant Genesis Trading. Hut 8 CFO Jimmy Vaiopoulos feels comfortable with the amount of debt which is due in 2021 and has an interest rate of 9.85 %. He expects the bitcoin price to go up.

The Canadian bitcoin industry is lucky because it was declared “essential” even under the COVID-19 lockdown. In some countries, e.g. Argentina the miners were not allowed to continue working as before. Jimmy Vaiopoulos is also expecting new more productive hardware from China. There were some delays but the hardware is expected soon.

However, CEO Andrew Kiguel and board member Gerri Sinclair resigned recently. Mr. Kiguel said that the world is facing supply issues in necessary medical equipment in contrast to hardware for bitcoin mining machines. BitPatagonia, a mining-farm in Argentina was closed because of the COVID-19 pandemic.

The co-founder of the company, Walter Salama predicts that the financial burden that smaller operations are facing might put an end to the idea of decentralization. Hut 8 applied for an Emergency Wage Subsidy from the Canadian government. The program helps companies that have lost over 30 % of their earnings since 2019 continue paying salaries to the employees.

Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

Editors’ Recommendations:

Comments

More in News