The first exchange traded bitcoin fund (ETF) in North America now holds over 11,000 bitcoins. Purpose Bitcoin ETF saw strong interest at launch. An ETF researcher stated that the surge in interest was evidence of a combination of pent-up demand, Bitcoin price, and investors switching from other methods of acquiring cryptocurrency risk.
First North American bitcoin ETF with more than 11,000 bitcoins
The first approved Bitcoin Exchange Traded Fund (ETF) in North America, Purpose Bitcoin ETF, holds 11,141,2363 bitcoins as of March 2. According to Purpose Investments, which manages the fund, the Bitcoin ETF currently has CA $ 669 million ($ 530 million). in assets under management.
Purpose The Bitcoin ETF gained a lot of attention when it was launched on the Toronto Stock Exchange (TSX) on February 18. The fund had a trading volume of more than US $ 165 million on the first day. The ETF trades under the symbols BTCC.B (Canadian Dollar Denominated Non Currency Hedged ETF Shares) and BTCC.U (US Dollar Denominated Non Currency Hedged ETF Shares).
Purpose of the Bitcoin ETF’s Bitcoin holdings. Source: Glassnode
However, trading has slowed significantly since its inception. The volume on Tuesday was $ 17 million. Ben Johnson, Morningstar’s global director of ETF research, was quoted by Bloomberg as saying, “The initial surge in interest was evidence of a combination of pent-up demand, investors switching from other means of getting exposure to Bitcoin, and the fact that the Bitcoin price hit new highs when the Purpose ETF started trading. In the longer term, I expect the volume to correlate with the Bitcoin price. “
Canada’s securities regulator has approved another Bitcoin ETF. The Evolve Bitcoin ETF was traded on the TSX one day after the Purpose Bitcoin ETF. It trades under the symbol EBIT (which provides exposure to the daily price movement of Bitcoin to Canadian dollars) and EBIT.U (which provides exposure to the daily price movement of Bitcoin to US dollars).
The volume of the Evolve Bitcoin ETF at launch was around $ 15 million. The volume fell to around $ 3.2 million on Tuesday. The ETF cut its management fee from 1% to 0.75% on February 24, cheaper than the Purpose Bitcoin ETF’s fees. On March 2, Evolve filed to list and trade an Ether ETF designed to give investors exposure to ETH.
In the meantime, the US Securities and Exchange Commission has not approved a cryptocurrency ETF. President Joe Biden’s decision to head the SEC, Gary Gensler, has yet to be confirmed as SEC chairman. This week the Chicago Board Options Exchange (Cboe) filed with the SEC to list and trade a Bitcoin ETF.
Would you invest in a Bitcoin ETF? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.
