Subscribe & Save 5% on Cryptonary Pro!
Bitcoin BTC

Purpose Bitcoin ETF roars into action with $165 million trading volume

  • Canada’s first Bitcoin ETF has a stellar performance on its first day as more than $165 million of the fund’s shares were traded.
  • The ETF was launched at a time when bitcoin is surging to new all-time highs.
  • The demand for the ETF puts the U.S. in the spotlight in regards to the approval of similar products.

The physically-settled Bitcoin ETF launched in Canada by Purpose Investments roared into action with a stellar performance.

The Purpose Bitcoin ETF was the most traded ETF in Canada on its debut.

Purpose bitcoin ETF trading volume

The Fund, which is denominated in both the Canadian dollar and U.S. dollar classes, enjoyed a greater trading volume than other ETFs on its first day, with the CAD class accounting for the lion’s share.

The Canadian dollar-denominated Fund, trading under the symbol BTCC.B roared into action as investors traded the Fund’s shares worth C$209 million (US$165 million).

The USD class (BTCC.U) was placed eleventh as C$41.12 million ($42 million) worth of the shares exchanged hands.

One Bitcoin currently buys 5,249 BTCC.U shares or 6,664 BTCC.B shares.

On its second day of trading, the Fund bought 3535 bitcoins and now holds a total of 6036.7 BTC.

In total, the Fund holds a total of $421 million in assets under management (AUM).

Above the norm

A Bloomberg Intelligence Analyst James Sayffart said noted that BTCC’s debut trading volumes were higher than the usual trading volumes on the first day. 

The ETF’s proponents argue that it will trade without the massive premiums that characterize many bitcoin Trusts in the U.S.

“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” said Todd Rosenbluth, CFRA Research’s director of ETF research.

“While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC,” Rosenbluth added.

An indication of demand

The high trading volume of BTCC indicates the high demand for bitcoin ETFs and similar products.

Moreover, it makes a strong case for the U.S. to approve its first bitcoin ETF. Regulators have rejected previous filings due to allegations of industry manipulation as well as the wild price swings associated with cryptocurrencies.

With bitcoin surpassing $1 trillion in market capitalization and change of leadership at the Securities and Exchange Commission (SEC), analysts are hopeful that a BTC ETF will be approved.

The cryptocurrency industry is slowly coming of age as institutional investors turn their attention to bitcoin as a hedge against inflation.

Sign up for our FREE mailing list

Join 12,590 others now and get actionable research and analysis sent directly to your inbox.

Post a Comment


Delivered to your inbox, every Sunday evening.