North America’s first Bitcoin exchange-traded fund (ETF) now has more than 11,000 Bitcoins. Purpose Bitcoin ETF showed strong interest when it was launched. An ETF researcher explained that the surge in interest proves a certain combination of pent-up demand, the price of Bitcoin, and the conversion of investors from other ways to gain exposure to cryptocurrencies.

The first North American Bitcoin ETF holding more than 11K Bitcoin

As of March 2, the first approved Bitcoin exchange-traded fund (purpose) in North America held 11,141.2363 Bitcoins. According to the investment plan for the purpose of managing the fund, the current assets of the Bitcoin ETF are 669 million Canadian dollars (530 million U.S. dollars). Among the assets under management.

Purpose Bitcoin ETF attracted widespread attention when it was launched on the Toronto Stock Exchange (TSX) on February 18. The fund’s trading volume on the first day exceeded US$165 million. The trading codes of ETFs are BTCC.B (Canadian dollar-denominated ETF non-currency hedging unit) and BTCC.U (USD-denominated ETF non-currency hedging unit).

The Bitcoin holdings of the destination Bitcoin ETF. Source: Glassnode

However, since its launch, the transaction speed has slowed significantly. The trading volume on Tuesday was $17 million. Bloomberg quoted Morningstar’s Global ETF Research Director Ben Johnson as saying: “The initial surge in interest shows evidence of the fact that pent-up demand, investors have converted their exposure to Bitcoin through other means, and the price of Bitcoin. When the purpose ETF started trading, it hit a new high. In the long run, I expect the trading volume to be correlated with the price of Bitcoin.”

Canadian securities regulators have approved another Bitcoin ETF. One day after the target Bitcoin ETF was issued, the Evolve Bitcoin ETF began trading on TSX. Its trading codes are EBIT (provides exposure to daily Bitcoin price movements denominated in Canadian dollars) and EBIT.U (provides exposure to daily Bitcoin price movements denominated in US dollars).

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The circulation of Evolve Bitcoin ETF is approximately $15 million. On Tuesday, its stock trading volume shrank to approximately $3.2 million. The ETF reduced its management fee from 1% to 0.75% on February 24, which is cheaper than the fees charged by the destination Bitcoin ETF. On March 2, Evolve applied for a listing and traded an Ethereum ETF aimed at providing investors with exposure to Ethereum.

At the same time, the US Securities and Exchange Commission (SEC) has not approved any cryptocurrency ETFs. Gary Gensler, President Joe Biden’s candidate to serve as the chairman of the SEC, has not yet been confirmed by the chairman of the SEC. This week, the Chicago Board Options Exchange (Cboe) submitted an application to the U.S. Securities and Exchange Commission (SEC) to list and trade Bitcoin ETFs.

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