Dubai finance watchdog approves listing of Bitcoin fund
The Bitcoin Fund (QBTCu.TO), a closed-end investment vehicle based in Canada, has received regulatory approval from the Dubai Financial Services Authority. The fund debuted on Nasdaq on June 23, 2021 and became the first listed digital asset fund in the Middle East.
The fund's goal is to provide investors in the shares of the fund with exposure to Bitcoin (BTC) and the daily price changes of the U.S. dollar price of Bitcoin, as well as long-term capital appreciation. The fund is a diversified portfolio of digital assets that invests in Bitcoin and U.S. dollar-denominated money market instruments.
A report by Trade Arabia states that the Bitcoin Fund is now in a position to list up to $200 million worth of units on Nasdaq Dubai, following its approval by the DFSA. This allows the region's first crypto-based product, which is listed on a regulated platform, to satisfy growing demand from institutional investors. The Bitcoin Fund will be available to investors of all levels, from big banks to individual traders.
Over the last four months, Bitcoin has surged in value, breaking a new all-time high of $66,000 this week. The world's number one digital currency is continuing to outperform expectations thanks to growing institutional adoption and renewed enthusiasm among retail investors.
Nasdaq Dubai is the first official stock exchange in the Middle East to offer this new service, which is part of its commitment to embrace fintech.
The DFSA is attempting to establish itself as an innovative regulator for the region by focusing on fresh technology and innovative financial solutions that may help drive economic growth. As reported by Cointelegraph, DFSA recently announced new rules for crypto-asset investments.