With $564 million assets under management (AUM), Purpose Bitcoin ETF, the world’s first Bitcoin Exchange-Traded Fund (ETF), is presently wowing crypto investors in Canada.
According to Glassnode, an on-chain market intelligence, Purpose Bitcoin ETF attracted no less than 9,300 Bitcoin (over $470 million) since it launched. This was considered an impressive and futuristic run, owing to the fact that the fund launched five days ago.
Just a few days after the world’s first #Bitcoin ETF started trading, its holdings are at 8,288 BTC – 2,251 were added yesterday alone.
The ETF’s AUM has crossed half a billion USD, currently sitting at $564M.
— glassnode (@glassnode) February 23, 2021
Purpose Investments AUM confirms there is a massive demand from investors (both retail and institutional) seeking to purchase Bitcoin from a regulated platform. One reason why investors are flocking to this Bitcoin product is that it offers actual exposure to the asset, rather than just tracking Bitcoin prices as most crypto products do.
Purpose’s explosive growth follows Bloomberg analyst Eric Balchunas’ prediction, who said its assets under management could top $1billion by the end of the week.
Also $BTCC will likely reach $1b in assets by the end of next week. The biggest ETF in Canada is only $8b. The second biggest is $5b. I wouldn’t be surprised if this passes one or both of them in next couple months (barring a nasty selloff, which is poss).
— Eric Balchunas (@EricBalchunas) February 19, 2021
What Purpose Bitcoin ETF Means for Investors
An exchange-traded fund is an investment mechanism that tracks the value of its underlying asset, such as Bitcoin. As it is with Purpose Bitcoin ETF, crypto shares are also tradable on the traditional stock exchange.
For more than three years now, the US Securities and Exchange Commission (SEC) has repeatedly kicked against proposals for Bitcoin ETFs, which have now been adopted by the Canadian government.
Purpose, however, offers investors two ETFs, namely -BTCC.U, which is targeted at investors buying with US dollars, and BTCC.B, a product targeted at those with Canadian dollars. The former holds 0.00019014 BTC per share (9.59 USD) while the latter holds 0.00014976 BTC (7.55 USD) per share.
With a management fee of just 1.00% per annum, Purpose had expressed its belief that the ETF is the simplest, most efficient, and most affordable means for investors to gain direct exposure to the digital currency world.
The Purpose ETF sees investors transacting directly in physically settled Bitcoin, which permits easy and efficient access to the emerging asset class of cryptocurrency for investors without having to worry about the risk of self-custody within a digital wallet.
More so, as a result of its elegant exchange-traded fund structure, and unlike the existing closed-end bitcoin funds which are currently offered in the market, the ETF accurately reflects the price of Bitcoin without the risk of the units trading at pronounced premiums or discounts to net asset value (NAV).
“We are so happy to be able to offer this innovation to investors, making the process of owning Bitcoin easier than ever. We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset, further cementing the investment opportunity it presents,” Som Seif, founder and CEO of Purpose had stated.