With the recent approval of Bitcoin Cash Exchange Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC), a new era of crypto-adoption appears to be upon us. According to Lucas Matheson, Director of Coinbase Canada, this development could also significantly benefit Canada.
Canadian leadership in cryptocurrencies
Canada has been a pioneer in introducing spot Bitcoin ETFs from early 2021. This move has put Canadian regulators at the forefront of the global financial world. Matheson points out that these ETFs have been gradually integrated into the wider Canadian financial system, becoming a standard part of family office portfolios, tax-advantaged funds and other traditional financial products.
Impact of the US decision on the Canadian market
The SEC’s approval of Bitcoin cash ETFs is seen as a validation of cryptocurrencies as an asset class, bolstering the credibility of the sector as a whole. This development is particularly significant for Canadians curious about cryptocurrencies, indicating an opportunity for increased learning and adoption of digital assets.
Canadian holders of BTC ETFs will benefit directly from the SEC’s decision, as the resulting influx of liquidity will strengthen the system as a whole. However, Canadian issuers of BTC ETFs may feel some competition from the US, particularly because of their aggressive fees.
Coinbase and the Canadian market
In August, Coinbase officially launched its operations in Canada, a few months after the withdrawal of Bybit and Binance from the country, in response to new regulatory guidance. The expansion coincides with a period of regulatory clarification regarding stablecoins and other ‘crypto-assets’, following several rounds of additional guidance.
Local cryptocurrency exchanges in Canada reached $1 billion in assets under management in December, marking an important step in the acceptance and integration of cryptocurrencies into the traditional financial landscape.
Conclusion
The arrival of Bitcoin cash ETFs in the US, coupled with Canada’s early leadership in this area, suggests a promising future for cryptocurrencies in North America. With increasingly clear regulation and growing adoption by both institutions and individuals, the cryptocurrency landscape in Canada is poised for significant growth and evolution.
