Canada’s first publicly traded Bitcoin fund has hit over $ 400 million in AUM in just two days after a successful launch.
ETFs are “in”
Canada’s first Bitcoin (BTC) exchange-traded fund (ETF) now has $ 421.8 million in assets under management (AUM) – just two days after its launch.
This follows an impressive start to trading for the fund, which became the first Bitcoin ETF traded on Thursday.
The fund manager received approval for Canada’s first BTC ETF last week after filing a detailed prospectus with the country’s regulator.
The Purpose Bitcoin ETF aims to provide Canadian investors with a safe way to invest in the volatile cryptocurrency without the complications of direct custody.
For this service, Purpose Investments charges investors a management fee of 1% – a relative norm in the Bitcoin ETF world.
The ETF is available for purchase on the Toronto Stock Exchange (TSX).
ETF room is heating up
Indeed, the cryptocurrency ETF room is heating up. A second Bitcoin ETF received approval from Canadian regulators on Friday to begin trading on the TSX.
The fund, called EBIT, is a product of Evolve ETFs based in Toronto and attracted $ 1.27 million in its first day. Its offer enables investors to claim the underlying Bitcoin (for instructions on how to buy Bitcoin at eToro), which it stores in a cold wallet on the blockchain of the top cryptocurrency.
Several other Canadian investment firms also appear to be following suit. CI Financial is also applying for approval to list its own Bitcoin ETF on the TSX.
Despite those successful filings in Canada, across the southern border, things haven’t historically been as successful for the crypto ETF space in the US.
Nonetheless, with the introduction of Grayscale’s Bitcoin Trust last year and its continued success, things are changing for US investors as they may now be able to catch up with their Canadian counterparts.
The news comes at a time when BTC is making new highs and hit a record $ 57,851.30 on February 20th, according to data from CoinGecko.
The stellar performance is causing a supply shortage for the top cryptocurrency, as several large institutions continue to buy Bitcoin worth billions of dollars.
Not surprisingly, these institutions prefer to keep their BTC holdings safe. Put simply, it means that cryptocurrency exchanges are finding that demand from retail and other “big money” investors is outperforming supply.
The market does not yet see an increase in trading alternatives such as derivatives, but that is only a matter of time. With leverage of up to and over 100x on major exchanges, there is only one direction for BTC.
Proof of text: Beincrypto