The first bitcoin exchange-traded fund (ETF) in North America now has over 11,000 bitcoins. Purpose Bitcoin ETF saw great interest in the launch. An ETF researcher explained that the surge in interest was evidence of some combination of pent-up demand, the price of bitcoin, and investors switching from other means to gain exposure to cryptocurrencies.
North America’s First Bitcoin ETF With Over 11,000 Bitcoins
The first approved bitcoin exchange-traded fund (ETF) in North America, Purpose Bitcoin ETF, has 11,141.2363 bitcoins as of March 2. According to Purpose Investments, which manages the fund, the bitcoin ETF currently holds CA $ 669 million ($ 530 million). in assets under management.
Purpose Bitcoin ETF gained a lot of attention when it launched on February 18 on the Toronto Stock Exchange (TSX). The fund posted more than $ 165 million in trading volume on day one. The ETF is traded under the symbols BTCC.B (Canadian dollar denominated unhedged ETF units) and BTCC.U (US dollar denominated currency unhedged ETF units).
However, trading has slowed down significantly since its launch. Volume stood at $ 17 million on Tuesday. Ben Johnson, Global Head of ETF Research at Morningstar, was quoted by Bloomberg as saying: “The initial surge in interest was evidence of a combination of pent-up demand, investors shifting from other means to gain exposure to bitcoin, and the fact that the price of bitcoin was reaching new highs when the Purpose ETF started trading. In the long term, I expect the volumes to correlate with the price of bitcoin. “
Canada’s securities regulator has approved another bitcoin ETF. Evolve Bitcoin ETF started trading on TSX one day after Purpose Bitcoin ETF. It is traded under the symbol EBIT (which offers exposure to the daily movement of bitcoin prices in Canadian dollars) and EBIT.U (which offers exposure to the daily movements of bitcoin prices in US dollars).
The volume of the Evolve Bitcoin ETF at launch was approximately $ 15 million. Its volume dropped to about 3.2 million shares on Tuesday. The ETF lowered its administration fee from 1% to 0.75% on February 24, making it cheaper than the fees charged by Purpose Bitcoin ETF. On March 2, Evolve submitted an application to list and trade an Ether ETF designed to give investors exposure to ETH.
Meanwhile, the US Securities and Exchange Commission (SEC) has not approved any cryptocurrency ETFs. The choice of President Joe Biden to lead 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.
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