Coinbase Optimistic About US BTC ETF Impact on Canada

Spot Bitcoin exchange-traded funds (ETFs) have been accessible to Canadian citizens since early 2021.

However, the fact that their southern neighbors now have the same opportunities may have subtle repercussions on the market, according to Coinbase Canada director Lucas Matheson’s statement.

Matheson lauded Canadian regulators as “leading the world.” Since their inception, Spot BTC EFTs have progressively integrated into the broader Canadian financial system and are increasingly becoming a customary component of holdings in tax-advantaged funds, family offices, and other conventional financial products, as Matheson highlighted.

Matheson stated that the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) “validates cryptocurrencies as an asset class and enhances the industry’s credibility.”

“For Canadians who have been curious about cryptocurrencies, this is a moment where I’d encourage everyone to learn about digital assets as we usher in a new wave of crypto adoption.”

He added that Canadian BTC ETF holders will benefit from the SEC’s decision because the influx of liquidity strengthens the entire system.

However, issuers of Canadian Bitcoin ETFs may face competition from the United States due to “the United States’ reputation for imposing high fees.”

“Coinbase is ecstatic to see that cryptocurrency is here to stay,” Matheson concluded. Coinbase launched in Canada formally in August, three months after the withdrawal of Bybit and Binance from the region in light of revised regulatory directives.

Canadian Securities Administrators’ restrictions on transactions involving “value-referenced crypto assets,” which have introduced instability for cryptocurrency exchanges.

Supplementary directives, including the most recent one published in October, clarified the situation. In December, local cryptocurrency exchanges totaled $1 billion in assets under management.