Bitcoin is a broad topic and links together many disciplines such as cryptography, game theory, monetary theory, monetary history, economics, computer science, network dynamics, thermodynamics and information theory. This text shall be understood as a demonstration that Bitcoin, Bitcoin-related dealings, trading, and applications unequivocally sit outside the scope of the securities or derivatives legislation.
This is what first attracted me to bitcoin; mathematics. Considering all I had seen in the financial industry, the expressions “Don’t trust, verify” and “Vires in numeris” resonated extremely well with me.
Fortunately, during this decade and a half long process, there was a major success achieved by the Canadian securities regulators. They forced investment dealers to provide their customers with a rate of return on the investment account they manage. Yes, left on their own, investment dealers did not think it was pertinent to present a rate of return on the investment accounts their advisors are managing. Regulators had to intervene and force them to do it. No, this is not a joke.
This is the story of my first attempt at launching a Fintech (a company in financial technologies) in Canada. I wish I could say that I failed, and moved on, but I was not able to build it in the first place.
What are the positives and negatives of a proposed Bitcoin ETF? Will these affect the introduction of such a product? Elisabeth Préfontaine, CFA, is the founder of Octonomics, an independent research and consultation firm; she aims to answer this query.