The Bitcoin Fund, a Canadian closed-end Bitcoin investment fund, has become the first of its kind in the Middle East after being listed on Nasdaq Dubai. Bloomberg. With the listing in the Middle East, the fund intends to allow its shares to be traded around the world around the clock.
According to her bulletinThe fund aims to provide unit holders exposure to bitcoin and daily bitcoin price movements in US dollars, as well as an opportunity for long-term capital appreciation. But the fund does not hedge the exposure of the US dollar to the Canadian dollar again. Furthermore, the Canadian fund applies a HODL mentality to its bitcoin funds and does not speculate on the short-term movements of the BTC/USD price.
The Bitcoin Fund invests in long-term holdings of Bitcoin purchased from spot markets and over-the-counter counterparties to achieve its investment objectives. The goal, in the prospectus, is to provide investors with a more convenient alternative to investing directly in bitcoin, in which case they do not need to buy and hold bitcoin themselves. However, this also means that fund investors will only enjoy the Bitcoin price appreciation at the cost of failing to reap the benefits it provides. Sovereign’s own money.
The fund may also take alternative investment methods to obtain bitcoin. These paths include leveraged positions, which will not exceed 25% of the fund’s NAV, as well as the use of derivatives, provided that the fund’s total exposure in the futures market does not exceed 5% of its NAV.
Furthermore, with the listing in the Middle East, the Canadian fund is now striving to provide global trading at all times. As the fund is on the Toronto Stock Exchange (TSX) trading in North American market times, the Dubai listing lasts for eight hours. Before New York time, trading will take place in approximately opposite periods.