January 20, 2021

A Crypto Investor

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Arxnovum files Bitcoin ETF application with Canadian securities regulators

Canadian investment fund manager Arxnovum Investments has filed a prospectus for a new Bitcoin (BTC) exchange-traded fund, or ETF, in Canada.

On Monday, the company filed a stack of preliminary documents for the Arxnovum Bitcoin ETF with Canada’s Ontario Securities Commission.

According to a preliminary long-form prospectus, Arxnovum plans to list its new Bitcoin ETF on the Toronto Stock Exchange. The listing is subject to the approval of the TSX in accordance with its original listing requirements. “The TSX has not conditionally approved the listing application of the Bitcoin ETF and there is no assurance that the TSX will approve the listing application,” Arxnovum noted.

The company said that units of the Arxnovum Bitcoin ETF will trade on TSX against the U.S. dollar. The ETF will include Bitcoin and/or Bitcoin futures contracts and/or other derivatives instruments. The new Bitcoin ETF may also hold cash, cash equivalents and/or other fixed-income securities, the company said.

According to the prospectus, the Arxnovum Bitcoin ETF will be backed by cryptocurrency exchange and custody firm Gemini, which will act as a sub-custodian for assets held outside of Canada:

“Gemini Trust Company is the sub-custodian of the bitcoin held by the Bitcoin ETF. The SubCustodian is a trust company licensed by the New York State Department of Financial Services and is qualified to act as a sub-custodian of the Bitcoin ETF for assets held outside of Canada in accordance with NI 81-102.”

Arxnovum’s CEO, Shaun Cumby, previously held a senior position at 3iq — the company that listed the first public Bitcoin fund in Canada in 2020. As Cointelegraph previously reported, Gemini was also providing its crypto custodian services for 3iq’s QBTC.U fund.

A Bitcoin ETF has been one of the most anticipated events in the crypto community in recent years. Back in 2018, the United States Securities and Exchange Commission rejected the Winklevoss twins’ second application for a Bitcoin ETF. 

According to a January report from JPMorgan Chase, the launch of a Bitcoin ETF could hurt Bitcoin’s price. On Jan. 13, Cointelegraph reported that VanEck, the first company to ever file for a Bitcoin ETF, is now facing a lawsuit from its former partner SolidX .