The rave now is all about the newly launched spot bitcoin ETFs in the United States, and other countries are racing to emulate this feat.
Spot Bitcoin ETFs, designed to directly track the price of Bitcoin, are a game-changer. They bring the crypto sector to the traditional financial markets, making it easier for even a ‘non-crypto person’ to participate. These ETFs are traded on regulated stock exchanges, a familiar ground for traditional investors, and can be bought in standard brokerage accounts, ensuring a comfortable investment experience.
However, the U.S. is not the first market to embrace spot Bitcoin ETFs; some other countries have offered these products to investors for several years. In this article, we will explore the corners of the world where you could invest in spot Bitcoin ETFs in 2024.
Countries Where Spot Bitcoin ETFs Are Issued Around the World
Just a heads up before we begin: there aren’t many countries that have approved spot Bitcoin ETFs, but there are a couple of surprising names on the list:
Australia (1 ETF)
Bermuda (1 ETF)
Brazil (2 ETFs)
Canada (6 ETFs)
Germany (3 ETFs)
Guernsey (3 ETF)
Jersey (5 ETFs)
Liechtenstein (1 ETF)
Switzerland (4 ETFs)
United States (11 ETFs)
More than 30 spot Bitcoin ETFs are available globally and can be traded in five geographical regions. The U.S.’s addition of 11 funds made North America a bigger hotspot, but Europe had always been a much bigger market. The region collectively has 17 spot Bitcoin ETFs, with a combined market size of over $3 billion.
What’s particularly interesting is that the European market is not dominated by the usual big players. Instead, smaller nations, with their favourable tax rules, have contributed the bulk of the funds. In fact, 10 out of the 17 Funds in the European market are domiciled in Liechtenstein, Bermuda, and the British Crown Dependent Autonomous Territories of Jersey and Guernsey. This unique landscape hints at the potential for further growth and diversification in the spot Bitcoin ETF market.
The South American market is much smaller, with Brazil being the biggest fully active market. Notably, Brazil’s primary stock exchange, B3, hosts a variety of crypto-focused ETFs, with over 13 crypto ETFs and over $285 million in assets under management.
Despite the massive activity in those regions’ crypto markets, the Asian and African markets have yet to have a locally issued spot Bitcoin ETF. The government and traditional financial institutions in these places have not yet warmed up to allowing cryptocurrencies in mainstream markets.
It’s a point of pride that Canada was the frontrunner in this financial product, with over six funds available for trading, even before the U.S. entered the scene. The country’s approval of the first pure-play Bitcoin ETFs for trading on the Toronto Stock Exchange (TSX) as early as February 2021 was a significant milestone. What’s more, Canadians had the unique opportunity to invest in them via tax-sheltered accounts such as tax-free savings accounts or registered retirement savings plans, further demonstrating Canada’s progressive approach to financial innovation.
Figure 1: Spot Bitcoin ETFs issued Across the World
Trading and Issuing ETFs: What is the Difference?
Issuing spot Bitcoin ETFs involves creating and launching a new ETF that holds Bitcoin. This requires obtaining regulatory approvals, establishing custody solutions for securely holding the Bitcoin assets, and ensuring compliance with various requirements.
On the other hand, trading spot Bitcoin ETFs is a straightforward process. It simply involves the buying and selling of shares of these ETFs. These shares are commonly traded on stock exchanges, providing investors with a readily accessible avenue through brokerage accounts or specialized investment vehicles like retirement accounts.
Naturally, residents of any country where a spot Bitcoin ETF is issued can trade the fund
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