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Bitcoin Fund worth $200M gets green light from Dubai’s FSA

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Dubai authorities continue to drive more adoption into the cryptocurrency industry by pushing more regulatory approvals. Just recently, the Dubai World Trade Centre Authority (DWTCA) partnered with the UAE’s Securities and Commodities Authority (SCA) to support the regulation and trading of crypto-assets. Of late, a lot of tailwinds originating from this region have triggered significant bullish developments.

The Bitcoin Fund, the Middle East’s first listed digital asset-based fund, has received approval from the Dubai Financial Services Authority (DFSA) for its At-the-Market program. The fund debuted on Nasdaq on 23 June 2021 and became the first listed digital asset fund in the Middle East.

Following the same, it is now in a position to list up to $200 million worth of units on Nasdaq Dubai. Ergo, it now allows the said platform to satisfy the surging demand.

Frederick Pye, Chairman and CEO of 3iQ Digital Asset Management, 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.”

Meanwhile, the fund aims to provide investors with exposure to Bitcoin and the daily price changes of Bitcoin in USD, as well as long-term capital appreciation. The Bitcoin Fund will be available to investors of all levels from big banks to individual traders.

“3iQ has appointed Canaccord Genuity and Dalma Capital as the joint-lead arrangers for the regional offering of the Fund. BHM Capital has also been appointed as the Fund’s Liquidity Provider,” the report noted.

BTC continues to impress different institutions, not only in the UAE but also across the globe. Different big banking firms have incorporated Bitcoin in their portfolios. The world’s largest digital currency continues to outperform expectations thanks to growing institutional adoption and renewed enthusiasm among retail investors.

Hence, to capitalize on this demand, the said fund is offering regional investors ‘once-in-a-lifetime access’ through a regulated medium.

“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.”

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Shubham is a full-time journalist at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.