Canadians have had spot Bitcoin (BTC) exchange-traded funds (ETFs) available to them since early 2021, but there may be subtle effects on the market now that their neighbors to the south have the same opportunities, Coinbase Canada director Lucas Matheson told Cointelegraph.
Matheson praised Canadian regulators as “leading the world.” Spot BTC EFTs have been gradually integrated into the larger Canadian financial system since their introduction and are becoming a standard part of family office holdings, tax-advantaged funds and other mainstream financial products, Matheson said.
The United States Securities and Exchange Commission (SEC) decision to approve spot BTC ETFs “validates cryptocurrencies as an asset class and builds credibility for the industry at large,” Matheson said, adding:
“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.”
Canadians BTC ETF holders will benefit from the SEC decision as the resulting influx of liquidity bolsters the entire system. Canadian BTC ETF issuers may feel some competition from the United States, however, as “the U.S. is known for its aggressive fees.”
DeFi growth helps push crypto’s share of the global money supply above 2% https://t.co/SU9FgxfrCq
— Coinbase Canada (@CoinbaseCAN) May 16, 2021
“Crypto is here to stay, and Coinbase couldn’t be more excited,” Matheson concluded.
Related: Bitcoin ETF: ‘Sell the news’ event or pivotal crypto adoption moment?
Coinbase officially launched in Canada in August, three months after Bybit and Binance left the country in response to new regulatory guidance. Stablecoins have been a source of uncertainty for crypto exchanges as the Canadian Securities Administrators placed restrictions on transactions with “value-referenced crypto assets.” That situation became clearer after several rounds of additional guidance, the last of which appeared in October.
Local crypto exchanges reached $1 billion in assets under management in December.
Magazine: Best and worst countries for crypto taxes — plus crypto tax tips