The first Bitcoin Exchange Traded Fund ever is ironically benefiting from the current market decline. Purpose Bitcoin ETF is traded in Canada and now has over 20k BTC under its management. The fund was able to hit this mark as it consistently generated $3 million every day since the Bitcoin market capitulated.
Analytics firm Glassnode revealed that the ETF hit a miraculous increment spark from mid-May. There was no dull moment for the fund as it kept shooting up to great heights that seriously contrasted with the state of the correcting crypto market. From May 15, the ETF gathered about 86.15 BTC and never stopped as it now holds 21,114 Bitcoins today.
It seems anti-ETFs could have their criticisms tuned down for a while due to the proof of institutional success with the Purpose Bitcoin ETF. The United States is yet to embrace the idea of a Bitcoin ETF so far. Yesterday, the first-ever Bitcoin ETFs in Brazil and Dubai were launched simultaneously, ahead of the US.
The Popularity of ETFs
Exchange Traded Funds are fast evolving. This sphere of the financial world has been developing for the past 20 years and with the wave of its relevance so far, a lot more appears to be in store for it.
In the first quarter of 2021 alone, over 83 ETFs were set in motion. The second quarter of this year as well saw the approval of 60 more ETFs. Aside from the Purpose ETF, others have generated great gains including Vanguard Value ETF and the ARK Innovation ETF.
Canada has been more receptive to these ETFs as investors urge the US to do the same. It is no news that if the US Securities and Exchange Commission approves a BTC or ETH Exchange Traded Fund, the returns would turn out more than in Canada because of the large potentials in the US market.