The Bitcoin Fund listed on the Nasdaq Dubai exchange Wednesday, the first of its kind to trade in the Middle East as cryptocurrencies grab attention globally.
The stock closed at $38.30, up 10% for the day, according to prices on Nasdaq Dubai’s website.
The Canadian fund was the first of its type to be listed on a major exchange, in Toronto last year. The intent of the Dubai listing is to get trading at all hours around the globe. Dubai-based Dalma Capital Management Ltd. was the joint lead arranger for the offering.
The Bitcoin Fund invests in long-term holdings of Bitcoin as a safer alternative to direct investments in the cryptocurrency, according to its prospectus. The fund does not speculate with regard to short-term changes in Bitcoin prices.
Just six weeks ago, Bitcoin was trading near $60,000 amid a warmer embrace from Wall Street as well as retail investors. But negative attention about its energy use, brought on largely by Tesla Inc.’s Elon Musk, as well as a clampdown from China have led to a slide in recent weeks, with the price briefly dropping below the key $30,000 level on Tuesday.