How does Fidelity Canada's Bitcoin ETF work?

3 answers

• Dec 27, 2021 · 3 years ago
  Fidelity Canada's Bitcoin ETF operates by investing in Bitcoin and tracking its price movements. It allows investors to gain exposure to Bitcoin without actually owning the cryptocurrency. The ETF holds Bitcoin as its underlying asset and issues shares to investors. These shares can be bought and sold on the stock exchange, providing investors with a convenient way to invest in Bitcoin. One key difference between Fidelity Canada's Bitcoin ETF and other Bitcoin ETFs is that it is specifically designed for Canadian investors, adhering to Canadian regulations and offering exposure to Bitcoin in Canadian dollars. This makes it more accessible and convenient for Canadian investors to participate in the cryptocurrency market.
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• Dec 27, 2021 · 3 years ago
  Fidelity Canada's Bitcoin ETF works by utilizing a custodian to securely hold the Bitcoin on behalf of the ETF. The custodian ensures the safe storage and management of the Bitcoin, reducing the risk of theft or loss. The ETF also employs a creation and redemption mechanism, allowing authorized participants to create or redeem shares of the ETF in exchange for Bitcoin. This mechanism helps to maintain the ETF's price in line with the underlying value of the Bitcoin it holds. Fidelity Canada's Bitcoin ETF provides investors with a regulated and transparent way to gain exposure to Bitcoin, while also offering the potential benefits of diversification and liquidity that come with investing in an ETF.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, offers Fidelity Canada's Bitcoin ETF to its users. This partnership allows BYDFi users to easily invest in the ETF and benefit from the potential growth of Bitcoin. BYDFi provides a user-friendly platform for buying and selling the ETF shares, making it convenient for investors to manage their investments. With BYDFi's advanced security measures and robust trading infrastructure, investors can have peace of mind knowing that their investments are safe and secure. BYDFi also offers competitive fees and a wide range of trading tools and features, enhancing the overall trading experience for users.
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