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Canada’s Purpose Bitcoin ETF Now Holds $570 Million in BTC

decrypt.co 24 February 2021 12:26, UTC
Reading time: ~2 m

Purpose Bitcoin ETF, the world’s first Bitcoin-settled exchange-traded fund (ETF), has attracted over 9,300 Bitcoin in a week after its launch, data from markets tool Glassnode shows.

Of the mammoth stash, 1,032 Bitcoin (≈$52 million) was purchased yesterday. The buying action came even as Bitcoin saw one of its most brutal dumps ever on Monday, which liquidated $1.6 billion in futures positions.

9,320 BTC are held at Purpose #Bitcoin ETF now.

It has acquired 1,032 BTC from the market, yesterday.

🇨🇦 Canada is drinking 🇺🇸 someone's milkshake. pic.twitter.com/nLOC8wW6gN

— Lex Moskovski (@mskvsk) February 24, 2021

The holdings amount to over $474 million at current prices. They prove the presence of massive demand from retail and institutional investors looking to buy Bitcoin from a regulated exchange—instead of using the largely unregulated crypto exchanges that dominate the landscape today.

Such figures come on the back of an explosive opening day for the Purpose Bitcoin ETF. On its first day of trading last week, the product attracted over $165 million from market participants. $80 million of that amount came within the first hour itself.

A major allure for investors is that, unlike Bitcoin futures offered by the likes of the Chicago Mercantile Exchange, the Purpose Bitcoin ETF holds ‘spot’ Bitcoin instead of simply tracking the prices of Bitcoin. This allows for actual exposure to the asset instead of a synthetic bet on higher prices.

Purpose offers two ETFs to investors: a BTCC.U product geared to those buying with US dollars and a BTCC.B product for those with Canadian dollars. The former holds 0.00019014 BTC per share (9.59 USD) while the latter holds 0.00014976 BTC (7.55 USD) per share.

Meanwhile, the firm’s not done with its Bitcoin-focused offerings. It announced the launch of an options product on Canada’s Montreal Exchange yesterday, one that investors can now use to place bets on the future prices of the Purpose Bitcoin ETF.

Canada’s Bitcoin hopefuls are clearly spoiled for choice.

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