Exchange Traded Funds (ETFs) are becoming a trending need since the Market declined in May. Increasing demand for the Canadian Purpose Bitcoin ETF has now seen it grow to hold over 22,500 pieces of the digital coins. The persistent demand is majorly from institutional investors and Purpose ETF has increased holdings as a result.
Unlike the US, Canada appears receptive to the concept of Exchange Traded Funds that would be able to track the performance of the crypto market. The Ontario Securities Commission (OSC) approved the Purpose Bitcoin ETF earlier this year, and it has grown rapidly from then. Before the tumultuous market crash in May kickstarted, Purpose accumulated over $400 million in assets under management.
In mid-May, the market plummeted so negatively that Bitcoin lost over 30 percent of its market cap in just a week. The market crash was induced by the cryptic tweets from Elon Musk and the intolerance of China for digital asset activities. This led to disinterest in the Purpose ETF on the part of investors and the accumulated revenues declined heavily.
However, according to Glassnode, there’s a very obvious glimmer of hope for the Purpose ETF as it has accumulated a total 21,114 BTC by May 24th. The Analytics firm explained that about 86.15 BTC flowed into the ETF daily and reached 3,446 BTC in less than nine days.
Will SEC Approve a Bitcoin ETF Soon?
The United States Securities and Exchange Commission (SEC) is believed to be taking too much time to approve a crypto ETF. Over 13 applications for a Bitcoin ETF are on the SEC’s desk awaiting approval.
A SEC Commissioner Hester Peirce said that the regulatory body would have approved a Bitcoin ETF earlier if they employed regular standards. Highlighting the difference in Bitcoin ETFs and others, Pierce said the agency is employing a double standard to study the potentially speculative funds.