BTCC is a registered exchange in the US, Canada, and Europe. Through the ups and downs of numerous market cycles, BTCC has supplied safe trading services with cutting-edge technology for the past 11 years.
The crypto industry is rapidly expanding as more individuals begin to spend their money and discover all the benefits it offers. Not only are new investors streaming in, but that existing investors are also looking for new methods to better their investment strategy.
Futures have become one of the most popular and effective tools at the disposal of crypto traders when it comes to techniques. The temptation of crypto futures is too powerful to ignore because they allow you to obtain more exposure to your favorite assets.
If you are wanting to learn about BTCC, chances are that you are interested in trading bitcoin futures. If this is the case, let us tell you all about BTCC, what it has to offer, and whether it is a good fit for you.
Purpose investments launched the world’s first Bitcoin ETF in February 2021.
Like purchasing popular commodity ETFs on the Toronto Stock Exchange (TSX) to gain exposure to the underlying commodity, e.g. Gold, the Purpose Bitcoin ETF provides exposure to actual Bitcoin.
Packaging cryptocurrency in an Exchange-Traded Fund makes it easier for retail investors to hold digital currency without worrying about losing their private keys or getting hacked.
It also means you do not need to open an account at a cryptocurrency exchange since the ETFs are available through your existing brokerage account.
Since the Purpose Bitcoin ETF (BTCC) was launched, many other crypto ETFs have been listed on the TSX.
In 2022, BTCC launched tokenized futures, an innovative product invented by the exchange, on its platform, allowing users to trade stocks and commodities futures with USDT as the margin.
Purpose Investments Cryptocurrency Portfolios
Purpose Investments was established in 2012. It offers several investment products utilizing alternative strategies and asset classes.
Two of its most popular funds are:
- Purpose Bitcoin ETF (BTCC), and
- Purpose Ether ETF (ETHH)
What is BTCC?
BTCC provides investors with an easy way to invest in Bitcoin by purchasing a publicly traded ETF. The fund carries a “high” risk rating and is unsuitable for all investors. This is because the price of the underlying bitcoin asset is volatile, with significant intraday increases or decreases in price.
BTCC is traded on the TSX under three different tickers: BTCC, BTCC.B, and BTCC.U. BTCC is purchased with Canadian dollars and is hedged against USD exposure. BTCC.B is also purchased using Canadian dollars; however, it does not hedge against USD fluctuations. BTCC.U is denominated in US dollars.
BTCC ETF Holdings
BTCC is 100% invested in “physically settled” Bitcoin. This means the ETF holds no other assets outside of bitcoin cryptocurrency. If your investment portfolio is 100% made up of BTCC, you are 100% invested in bitcoin, and your portfolio could experience significant declines if the asset falls in price.
BTCC’s bitcoin holdings are held in cold storage, keeping them safe and away from potential hacking attempts.
Pros and Cons of BTCC
- Daily, weekly, and perpetual futures
- Traders seeking leverage opportunities
- Users that value reputation and a strong track record
- New retail investors that prefer a straightforward and simple user interface
- Easy to purchase and gain exposure to bitcoin, even if you are a newbie to cryptocurrency.
- Sold on regulated brokerage platforms with access to the Canadian Investor Protection Fund (CIPF) protection if the brokerage becomes insolvent.
- Can hold in registered investment accounts and keep gains tax-free.
- The fund holds bitcoin assets in cold storage, removing the need to purchase your own hardware wallet.
- Good liquidity makes it easy to sell your holdings when you want to. Largest variety of futures: Daily, Weekly, Quarterly and Perpetual futures
- Volatile, risky asset and not for risk-averse investors.
- Bitcoin in cold storage is still not 100% secured.
- High management fees.
- BTCC alone is not diversified and should be held as part of a wider portfolio.
- Advanced functionalities limited to supported cryptocurrencies
- More centralized than other competing platforms
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Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.
When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.