First Middle East Bitcoin Fund Listing on the Nasdaq Dubai Exchange Met with “Very Strong Demand”
The Bitcoin Fund is listed on the Nasdaq Dubai exchange. It is the first cryptocurrency fund that trades in the Middle East.
The Fund invests in long-term holdings of Bitcoin and does not speculate on short-term changes in price as an alternative to direct investments in the cryptocurrency.
The stock closed at $38.30 on Wednesday, up 10% for the day, according to prices on the website. Zachary Cefaratti, CEO of Dubai-based Dalma Capital, which was the joint lead arranger for the offering said,
“Today's secondary listing of existing units from Canada was met with very strong demand, which has validated the need for an additional offering to satisfy the demand from regional investors.”
Last year, the Canadian fund was listed on a major exchange in Toronto, but with the Dubai listing, the intent is to get trading at all hours around the globe.
The fund has roughly $1.5 billion in assets under management and plans to double that next year.
In April, Canada’s largest digital-asset investment fund manager 3iQ Corp. said it was hoping to raise over $200 million by listing its Bitcoin exchange-traded fund in Dubai.
For this, they are looking to work closely with banks in the UAE and potential banks from other countries in the region as well. Frederick Pye, the chief executive officer of 3iQ said,
“If the volumes are significant, we'll be looking to raise capital to increase the size of the Bitcoin Fund here in Dubai, and we will continue to issue shares based on the demand that comes from the region.”