The Dubai Financial Services Authority (DFSA) has approved the Bitcoin Fund, the Middle East’s first listed digital asset-based fund, for its At-the-Market program on Nasdaq Dubai.
Middle Eastern investor demand is increasing.
Following the approval of the offering, The Bitcoin Fund is now able to list up to $200 million in units on Nasdaq Dubai, allowing the Middle East’s first listed digital asset product to meet the growing demand from regional institutional investors.
“We are extremely pleased that the DFSA has approved the ATM program.” We have seen an increase in appetite from large regional institutional investors since we listed The Bitcoin Fund on the Nasdaq Dubai. “With the ability to execute significantly larger sale offerings, we anticipate that this will help to further grow the fund in the region,” said Frederick Pye, Chairman and CEO of 3iQ Digital Asset Management.
Bitcoin has been on a price rally since June, reaching a new all-time high of $66,000 earlier this week. The world’s number one digital asset continues to outperform expectations, owing primarily to a new round of institutional adoption and renewed interest from retail investors.
Bitcoin has experienced unprecedented growth as a digital asset, and the fund on Nasdaq Dubai provides regional investors with once-in-a-lifetime access to the world’s largest digital asset via a regulated medium that they are familiar with.
“At the time of the Middle East launch, the price of Bitcoin was around $33,000 – which, from an investor standpoint, we felt was a great entry point into the market for our Middle Eastern investors,” Pye explained.
Bitcoin fund that is inter-tradeable and has a Canadian listing
The Bitcoin Fund is fully interchangeable between the Toronto Stock Exchange and Nasdaq Dubai, implying equal value between the assets, and as an exchange-listed fund, it allows investors to buy and sell with ease and convenience, allowing for true ease of access.
The Bitcoin Fund will also be available to all investor types, whether institutional or retail. Canaccord Genuity and Dalma Capital have been appointed as joint lead arrangers for the Fund’s regional offering by 3iQ. In addition, BHM Capital has been named the Fund’s Liquidity Provider.
Globally, Bitcoin has risen to become the world’s most valuable digital asset, with a price peak of $66,000 in October.
For the first time in the region, the Bitcoin Fund provides titled, auditable ownership of Bitcoin through a traditional investment vehicle, allowing for a publicly quoted mechanism for exposure to an asset class that has experienced exceptional appreciation over the preceding decade.