Fred Pye discussed how Canadian cryptocurrency trading regulations are luring investors to the market for digital assets.
According to Fred Pye, CEO of 3iQ, Canada’s first Bitcoin fund issuer, institutional investors and portfolio managers now perceive the popular cryptocurrency as a “serious venue” for investment due to the fading excitement around it.
Canada’s Advanced Regulation and Investor Interest
At the Bitcoin 2023 conference, Pye spoke with Cointelegraph and emphasized Canada’s progressive regulation of cryptocurrency trading, which has drawn investors to the market for digital assets. The country appeals to institutional investors because of its strong regulatory environment, which gives the destination a sense of legitimacy and security.
Fund managers and institutional investors that manage diversified portfolio assets are actively looking for alternate investment strategies given the global inflationary climate and macroeconomic challenges. In light of current market circumstances, Bitcoin is increasingly being viewed as a realistic option due to its potential as a store of value and an inflation hedge.
“The FOMO in Bitcoin is gone. It’s all moved over to AI [artificial intelligence]. So now the institutions and the proper portfolio managers, the people that are responsible for running diversified portfolios, are now starting to take a look at Bitcoin as a serious venue.”
The regulatory barriers to institutional adoption have been present for some time, but given the U.S. Securities and Exchange Commission’s reluctance to regulate the cryptocurrency market, Canada has notably taken the lead in the development of crypto ETFs in North America.
Canadian regulators have approved several crypto ETFs in the past years, including Bitcoin and Ether $1,815 products from 3iQ, Purpose Investments and Evolve Funds Group, attracting millions of dollars to their crypto products.