Bitcoin ETF

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I am a bit confused about BTCC probably because it is so simple.
I can purchase in $CAD (BTCC.B) or $US (BTCC.U) but the price is the same? Normally, if I purchase the .TO it is more expensive then the US equivalent.
As well, what exactly do I own when I buy it?
If I buy a standard ETF I know I own parts of what the ETF contains. If the parts go up so does the potential unit price of the ETF (as well, market can drive price). If BTCC is buying Bitcoin with the money invested then when Bitcoin falls in price the ETF could/should go cheaper and if Bitcoin goes up in price the ETF could/should go up in price.
But it seams to me that the ETF could simply move according to what the market pushes regardless of the price/value of Bitcoin.

I wish I could say I am simply too old to understand Bitcoin but I am young enough that it could eventually become part of my everyday life.

Note: I did read some but not all of the info on the ETF website.

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Asked on February 19, 2021 4:03 pm
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Hi there,

The ETF is expected to track the price of Bitcoin - plain and simple. Think of Bitcoin as a commodity. If Bitcoin goes up by 5% - the ETF should track it closely. It won't be perfect, but it'll be close. It should be the same as any other commodity ETF. It is as simple as that.

BTCC.B trades in CAD and BTCC.U trades in USD. The BTCC.B vs BTCC.U stocks won't be exactly the same as one another because as I understand it they may not necessarily hold the same amount of bitcoin - it'll depend on demand. Bottom line however, each should track the price movements of Bitcoin.

It owns Bitcoin - so the fund holdings are backed by actual Bitcoin, much like a gold bullion ETF is backed by actual gold.

Mat

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Posted by Mathieu Litalien
Answered on February 19, 2021 4:32 pm
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