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.
This is just wild. The Canada Bitcoin ETF was the most traded ETF in the country on its FIRST DAY. I've never seen that. It would be like an ETF here trading more than $SPY on its first day. And this is just the CAD class, USD class was 11th most traded. pic.twitter.com/NBpo0uFzZD
— Eric Balchunas (@EricBalchunas) February 19, 2021
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.
If you aren't tracking their AUM yet, you should be.
Not only we got another major driver of demand but also this gives us a taste of what the upcoming U.S. Bitcoin ETF is capable of. pic.twitter.com/SItu3cgVzx
— Lex Moskovski (@mskvsk) February 20, 2021
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.