The first bitcoin exchange traded fund (ETF) in North America now owns more than 11,000 bitcoins. Purpose of the Bitcoin ETF saw a strong interest during the launch. An ETF researcher explained that the increase in interest was evidence of a combination of pent-up demand, the price of bitcoin and investors switching from other means to gain exposure to cryptocurrency.
First North American Bitcoin ETF to own more than 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 14th. According to Purpose Investments, which manages the fund, the bitcoin ETF currently has $ 669 million ($ 530 million). in assets under management.
Target of the Bitcoin ETF got a lot of attention when it was launched on the Toronto Stock Exchange (TSX) on February 18th. The fund traded more than $ 165 million on the first day. The ETF trades under the symbols BTCC.B (Non-Currency Hedged Units in Canadian Dollars) and BTCC.U (US Dollar Denominated ETF Non-Currency Hedged Units).
However, trade has slowed significantly since its launch. The volume was $ 17 million on Tuesday. Ben Johnson, Morningstar’s global director of ETF research, is quoted by Bloomberg as saying: fact that bitcoin’s price was reaching new highs when the Purpose ETF started trading. In the long run, I expect the volumes to correlate with the bitcoin price. ”
Canada’s 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 symbols EBIT (which provides exposure to the daily price movement of bitcoin in Canadian dollars) and EBIT.U (which provides exposure to the daily price movements of bitcoin in US dollars).
Evolve Bitcoin ETF’s volume at launch was approximately $ 15 million. The volume decreased to about $ 3.2 million on Tuesday. The ETF reduced its management fee on February 24 from 1% to 0.75%, making it cheaper than the fees charged by Purpose Bitcoin ETF. On March 2, Evolve filed to list and trade an ethereal ETF designed to provide investors with exposure to ETH.
Meanwhile, the US Securities and Exchange Commission (SEC) has not approved any ETFs for cryptocurrencies. President Joe Biden’s choice of SEC leader 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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