The Dubai Financial Services Authority (DFSA) seem to be warming up to digital assets. The Bitcoin Fund, a closed-end investment vehicle based in Canada, has received regulatory approval from the eastern Arabian Peninsula financial watchdog. The fund debuted on the Nasdaq on June 23, 2021 and became the first listed digital asset fund in the Middle East.
The fund is a diversified portfolio of digital assets that invests in Bitcoin and U.S. dollar-denominated money market instruments. The fund will provide investors with exposure to Bitcoin and the daily price changes of Bitcoin in United States dollars, as well as long-term capital appreciation.
According to a publication by Trade Arabia, a media outlet in the country, 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.
What you should know
The Bitcoin Fund will be the region’s first crypto-based product to be listed on a regulated platform. It is expected that the fund will satisfy the growing demand for digital assets 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, reaching a new all-time high of $66,930.39 seven days ago. The world’s #1 digital currency is continuing to outperform expectations thanks to growing institutional adoption and renewed enthusiasm among retail investors.
Nasdaq Dubai is also the first official stock exchange in the Middle East to offer this new service, which is part of its commitment to embracing 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. The financial watchdog recently announced new rules for crypto asset investments.
Frederick Pye, Chairman and CEO, 3iQ Digital Asset Management (3iQ) stated, “We are extremely proud to have received the approval of the ATM program from the DFSA. 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.”