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UAE Markets Regulator Approves Trading of Canadian-Based Bitcoin Fund on Nasdaq Dubai Stock Exchange

Nicholas Otieno   Oct 28, 2021 08:00 3 Min Read


The Dubai Financial Services Authority (DFSA) – a financial regulatory government agency – has approved the first Bitcoin fund, a closed-end investment vehicle based in Canada, for distribution and offering to qualified investors in the Middle East region.

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While the Bitcoin fund received approval from Dubai’s market regulator in June. It was listed on the Nasdaq Dubai stock exchange when it became the first digital asset-based fund serving the Middle East region.

Following its approval by the DFSA, the Bitcoin fund can list up to $200 million worth of units on the Nasdaq Dubai stock market. The approval, therefore, allows the first cryptocurrency-based product listed on a regulated platform to satisfy rising demand from institutional investors in the Middle East region.

The Bitcoin fund will be available to investors of all levels, from individual traders to institutional investors, such as big banks and other investment firms.

The fund aims to provide investors based on the region with exposure to Bitcoin, tracking daily price movements of the cryptocurrency in U.S. dollars, and long-term capital appreciation.

The Bitcoin fund, offered and run by 3iQ Corp, is a diversified portfolio of digital assets that invest in long-term holdings of Bitcoin, bought from over-the-counter (OTC) counterparties and Bitcoin exchanges.

3iQ Corporation group is the largest Bitcoin and digital asset fund management firm in Canada.

Frederick Pye, the Chairman and CEO of 3iQ Corp, talked about the new development and said:

“Since we listed The Bitcoin Fund on the Nasdaq Dubai, we have seen an ever-increasing appetite from the large regional institutional investors. With the ability to now execute significantly larger sale offerings we anticipate that this will help to further grow the fund in the region.”

Pye further added that “at the time of the Middle East launch, the price of Bitcoin was around the $33,000 mark – which from an investor standpoint we felt was a great entry point into the market for our Middle Eastern investors.”

Based on its commitment to embrace fintech, Nasdaq Dubai is the first official stock exchange in the Middle East to provide such a new innovative investment service.

The Dubai Financial Services Authority (DFSA) is trying to establish itself as an innovative regulator for the Middle East region, focusing on innovative financial solutions and new technology to boost economic growth in the area.

The UAE Enjoys Crypto-Friendly Jurisdiction

Dubai has become a more cooperative environment for crypto investments. As a result, investors in the Middle East are beginning to get familiar with cryptocurrencies following the introduction of regulations that allow investors to invest a portion of their funds in the new asset class.

Earlier this week, the DFSA introduced a regulatory framework for investment tokens as part of its commitment to promote the digital financial and technological environment while meeting market players’ demands and requirements.

As reported by Blockchain.News in March, the DFSA called on members of the public to submit comments and views in its proposed rules for crypto assets considered security tokens.

The financial market regulator designed the token investment framework to protect the interests of investors and offer legal certainty for market operators.


Image source: Shutterstock

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