The Dubai Financial Services Authority (DFSA) has approved the Bitcoin Fund, a closed-end investment fund based in Canada.

Despite only receiving approval from the DFSA, the Bitcoin Fund was listed on Nasdaq Dubai in June, when it became the Middle East’s first digital asset-based fund. As part of the approval, the fund is in a position to list up to $200 million on the exchange.

The fund is a diversified portfolio of digital assets that invests in long-term holdings of Bitcoin, purchased from bitcoin exchanges and Over-The-Counter (OTC) counterparties. It provides exposure to Bitcoin (BTC), tracking daily price movements in United States dollars, and is offered by 3iQ Corp. 

“Since we listed The Bitcoin Fund on the Nasdaq Dubai, we have seen an ever increasing appetite from the large regional institutional investors. With the ability to now execute significantly larger sale offerings we anticipate that this will help to further grow the fund in the region,” said Chairman and CEO of 3iQ Frederick Pye. “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,” Pye added.

Earlier this week, the DFSA introduced a regulatory framework for investment tokens. The framework marks the first phase of the DFSA’s Digital Assets regime, and defines investment tokens as either a security token or a derivative token. 

Although cryptographically secured through distributed ledger technology (DLT), the announcement does not define investment tokens as cryptocurrency. What the authority called “exchange tokens” would be covered under new proposals, along with utility tokens and “certain asset-backed tokens (stablecoins).” The DFSA said it would issue its second consultation paper later in Q4.

Dubai has reportedly become one of the more cooperative environments for cryptocurrency investment. “Creating an ecosystem for innovative firms to thrive in the UAE is a key priority for both the UAE and Dubai Governments, and the DFSA,” said DFSA Managing Director, Head of Strategy, Policy and Risk Peter Smith.

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The post DFSA Approves Canadian Bitcoin Fund on Nasdaq Dubai appeared first on BeInCrypto.

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