Arxnovum requests a Bitcoin ETF from Canadian securities regulators

Winklevoss’ Gemini Trust will act as a sub-holder for Arxnovum’s new Bitcoin ETF in Canada.

Canadian mutual fund administrator Arxnovum Investments has issued a prospectus for a new Bitcoin Exchange Traded Fund (BTC), or ETF, in Canada.

On January 11, the company filed a set of preliminary documents for Arxnovum’s Bitcoin ETF with the Ontario Securities Commission of Canada.

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

The company said that Arxnovum’s Bitcoin ETF units will trade on the TSX against the US dollar. The ETF will include contracts for Bitcoin and/or Bitcoin futures and/or other derivative instruments. The new Bitcoin ETF may also hold cash, cash equivalents and/or other fixed income securities, the company said.

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According to the prospectus, Arxnovum Bitcoin’s ETF will be backed by the cryptomanic custodian and exchange company Gemini, which will act as a sub-depository for assets held outside Canada:

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

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Arxnovum’s CEO, Shaun Cumby, previously held a senior position at 3iq, a company listed on Canada’s first public Bitcoin fund in 2020. As reported by Cointelegraph previously, Gemini was also providing crypto custody 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. In 2018, the US Securities and Exchange Commission rejected the Winklevoss’ second application for a Bitcoin ETF.

According to a January report from JPMorgan, the launch of a Bitcoin ETF could affect the price of Bitcoin. On January 13, Cointelegraph reported that VanEck, the first company to apply for a Bitcoin ETF, now faces a lawsuit from its former partner SolidX.