Coinbase director: Canada might gain once the US finally get a spot BTC ETF

Written by Rock Buivy

Post Date: 24 Jan, 24

While Canada has maintained a spot Bitcoin ETF for several years, the recent surge in interest within the U.S. market may bolster its neighbor’s crypto landscape and escalate competition.

Coinbase Director Matheson contends that Canadian authorities are at the forefront globally, exemplifying leadership in the cryptocurrency space.

Since early 2021, Canadians have had access to spot Bitcoin BTC tickers down exchange-traded funds (ETFs).

Nevertheless, with their counterparts in the southern region now having equal opportunities, Coinbase director Lucas Matheson shared with us that there could be subtle effects on the market.

Canadian authorities are “leading the world,” according to Matheson.

Since its launch, spot BTC EFTs have progressively been incorporated into the broader Canadian financial system and are now a common feature of tax-advantaged funds, family office holdings, and other conventional financial products, according to Matheson.

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The approval of spot BTC ETFs by the US Securities and Exchange Commission, according to Matheson, “validates cryptocurrencies as an asset class and builds credibility for the industry at large.”

"For Canadians who have been curious about cryptocurrencies, this is a moment where I'd encourage everyone to learn about digital assets as we usher in a new wave of crypto adoption."

The SEC ruling will help holders of Canadian BTC ETFs since it will bring in more liquidity, which will strengthen the system as a whole.

The United States, however, might present some competition for Canadian issuers of BTC ETFs because “the U.S. is known for its aggressive fees.”

“Crypto is here to stay, and Coinbase is ecstatic about it,” Matheson said in closing.

Three months after Bybit and Binance left the country in response to new regulatory guidance, Coinbase made its official debut in Canada in August.

Following limits on transactions using “value-referenced crypto assets” by the Canadian Securities Administrators, stablecoins became a cause of confusion for cryptocurrency exchanges.

After multiple rounds of supplementary guidance – the most recent of which was released in October -that scenario became more apparent.

In December, local cryptocurrency exchanges managed $1 billion worth of assets.

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Coinbase Director Lucas Matheson, highlights the recent Bitcoin ETF approval as a transformative game-changer in the cryptocurrency landscape

Coinbase, a leading cryptocurrency exchange, recognizes the recent approval of Bitcoin Exchange-Traded Funds (ETFs) as a transformative development, signifying a game-changer for the cryptocurrency landscape.

This approval not only lends further legitimacy to the digital asset space but also opens up new avenues for Canadian investors to access and participate in Bitcoin investments.

Coinbase, one of the leading cryptocurrency exchanges, asserts that the approval of Bitcoin Exchange-Traded Funds (ETFs) marks a significant milestone in legitimizing the crypto space.

The green light for Bitcoin ETFs not only underscores the growing acceptance of digital assets but also provides increased accessibility for investors, particularly in Canada.

This move is expected to broaden the reach of cryptocurrency investments and contribute to the mainstream adoption of Bitcoin as a legitimate and recognized asset class.

As regulatory authorities continue to navigate the evolving landscape of digital assets, the approval of Bitcoin ETFs signals a positive step forward in fostering trust and inclusivity within the cryptocurrency market.

Choosing the right spot Bitcoin ETF involves a careful consideration of three key criteria: fees, liquidity, and fund trading costs.

While these ETFs all provide exposure to Bitcoin, the differentiating factors lie in these aspects.

For buy-and-hold investors, minimizing fees is crucial for optimizing total returns. Bitwise Bitcoin ETF stands out with the lowest ongoing fee of 0.20%, but ARK, Fidelity, VanEck, and iShares also offer competitive options within a narrow fee range.

Fee waivers are temporary, and investors should prioritize long-term sustainability after these periods end.

Grayscale, with a proposed fee of 1.50%, appears less favorable for investors seeking cost-efficient Bitcoin exposure.

Active ETF traders, on the other hand, need to prioritize liquidity to manage trading costs effectively. The bid-ask spread and depth of liquidity are critical considerations.

Crossing the bid-ask spread involves costs each time traders buy or sell, and a tighter spread, such as in the example of $9.99 bid/$10.01 ask versus $9.95 bid/$10.05 ask, can be more cost-effective.

Depth of liquidity is crucial for executing large trades without unduly influencing market prices.

While buy-and-hold investors face minimal liquidity risks, active traders should focus on these factors to optimize their spot Bitcoin ETF trading experience.

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