The Dubai Financial Services Authority (DFSA) has given a regulatory approval to the Bitcoin Fund called QBTCu.TO. DFSA gave the authorization to this digital asset fund, which is a closed-end investment unit and is situated in Canada. This is the first listed digital asset fund in the Middle East region. The fund was first listed on Nasdaq on 23rd June 2021.
The main objective of this fund is to provide exposure to investors of Bitcoin and everyday price fluctuations in USD. The fund also hopes to provide long-term capital appreciation for their investors.
The approved fund is a diversified portfolio of digital financial asset which invest in cryptocurrency like Bitcoin and USD denominated money market financial instruments.
The report from the Trade Arabia suggests that the Bitcoin Fund has received the authority to list up to $200 million dollar on Nasdaq Dubai by Dubai Financial Services Authority.
This enables the region’s first crypto-based product to meet growing demand from institutional investors by being listed on a regulated platform. The Bitcoin Fund will be open to all types of investors, from large institutions to individual traders.
Bitcoin has risen in value over the last four months, reaching a new all-time high of $66,000 this week. Because of increased institutional usage and renewed enthusiasm among retail investors, the world’s most popular digital currency continues to beat forecasts.
In the Middle East region, Nasdaq Dubai is the first stock exchange to offer this type of service, and it is the part of their plan to adopt fintech.
The Dubai Financial Services Authority is seeking to promote itself as a forward-thinking regulator in the region by focusing on new technologies and financial solutions that can assist the region prosper economically. The DFSA recently announced new guidelines for crypto asset investments.
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