A Bitcoin exchange traded fund for investment firm Purpose Investments has been approved in Canada after the Ontario Securities Commission gave the green light for the institutional fund.

The Purpose Bitcoin ETF is reportedly the first in the world to be physically settled using BTC, the firm stated clarified;

“The ETF will be the first in the world to invest directly in physically settled Bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency,”

An ETF style product from 3iQ was approved by Canadian regulators last year and listed on the Toronto Stock Exchange, however it was a closed end fund rather than one continually issuing units.

The decision document was approved on Thursday, Feb. 11, and covers the following territories; British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut.

It stated that the fund will offer units denominated in both United States and Canadian dollars with a 0.7% management fee, adding that it had applied to list ABTC units on the Toronto Stock Exchange.

Speaking to Reuters, Arthur Salzer, chief executive officer of Northland Wealth Management stated he "thinks the OSC is doing the right thing allowing for an ETF,” adding “it gets rid of some of the negatives of the current funds.”

Accelerate Financial Technologies has also filed and obtained a receipt for a preliminary prospectus with Canadian securities regulators for the Accelerate Bitcoin ETF (ABTC) on Feb. 2.

In mid-January, Canadian investment fund manager Arxnovum also filed a prospectus for a Bitcoin ETF with the Ontario Securities Commission.

This article has been updated to specify that it was the first physically settled ETF, clarify the name of the fund as Purpose Bitcoin ETF and add reference to 3iQ's product.