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The first bitcoin exchange-traded fund (ETF) in North America now holds more than 11,000 bitcoins. Purpose Bitcoin ETF generated a lot of interest when it launched. An ETF researcher explained that the surge in interest was evidence of a combination of pent-up demand, the price of bitcoin and investors shifting from other means of gaining exposure to the cryptocurrency. .
First North American Bitcoin ETF with over 11K 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 holds C $ 669 million ($ 530 million) in assets under management.
Purpose Bitcoin ETF gained attention when it launched on February 18 on the Toronto Stock Exchange (TSX). The fund recorded a trading volume of over $ 165 million on day one. The ETF trades under the symbols BTCC.B (unhedged US dollar ETF units) and BTCC.U (unhedged US dollar denominated ETF units).
However, trading has slowed down considerably since its inception. The volume stood at $ 17 million on Tuesday. Ben Johnson, Morningstar’s Global ETF Research Director, said: “ The initial surge in interest was evidence of a combination of pent-up demand, with investors shifting from other avenues to obtain bitcoin exposure and the fact that the price of bitcoin hit new highs when the Purpose ETF started trading. Longer term, I would expect volumes to correlate with the price of bitcoin. “
The Canadian securities regulator has approved another Bitcoin ETF. Evolve Bitcoin ETF started trading on the TSX one day after Purpose Bitcoin ETF. It trades under the symbol EBIT (which offers exposure to the daily bitcoin price movement in Canadian dollars) and EBIT.U (which offers exposure to daily bitcoin price movements in US dollars).
The volume of Evolve Bitcoin ETF at launch was approximately $ 15 million. Its volume fell to around $ 3.2 million in shares on Tuesday. The ETF lowered its management fee from 1% to 0.75% on February 24, making it cheaper than the fees charged by Purpose Bitcoin ETF. On March 2, Evolve filed an application to list and trade an Ether ETF designed to provide investors with exposure to ETH.
Meanwhile, the United States Securities and Exchange Commission (SEC) has not approved any cryptocurrency ETFs. President Joe Biden’s choice 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.
Would you like to invest in a Bitcoin ETF? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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