The world’s first Bitcoin exchange-traded fund (ETF) launched in Canada last week to a great reception by investors. It set the record for the best-performing ETF in Canada and one of the top five ETFs in North America. As Glassnode now reveals, it has shown no signs of slowing down, growing by 37% yesterday.
While U.S companies have been applying for a BTC ETF license for years now, it was the neighboring Canada that beat them to it. Purpose Investments Inc. launched the ETF on Thursday under the ticker BTCC. Immediately after it launched, it attracted a flurry of interest from investors, trading close to $400 million in two days.
As on-chain market analysis platform Glassnode now reveals, the BTCC ETF has started off the week positively. Its holdings are now at 8,288 BTC, adding 2,251 BTC, or 37%, on Monday alone.
“The ETF’s AUM has crossed half a billion USD, currently sitting at $564M,” Glassnode added.
In more good news for investors, Purpose announced that options for its BTCC ETF would begin listing today at the Montreal Exchange. Canadian financial services firm TMX Group would be in charge of the options.
While announcing the options, Purpose CEO and founder Som Seif remarked, “This is great news for investors and a powerful display of innovation in motion. In less than a week’s time from when we launched Purpose Bitcoin ETF, we’re already seeing the infrastructure for options trading put into place by the TMX Group. Not only does this provide investors with more ways to gain exposure to Bitcoin, it also really cements the idea that Purpose Bitcoin ETF is the premier tracker of the cryptocurrency in North America.”
Canada Overtakes U.S as ETF Hub
Canada is intent on becoming the premier cryptocurrency ETF hub globally. Just days after Purpose launched its ETF, yet another Canadian company launched its own. Evolve Fund Group’s ETF debuted on Friday, but attracted less interest, garnering just $14.5 million. CI Global Asset Management has also filed a preliminary prospectus for a third ETF.
According to Seif, the CEO at Purpose, Canada is much more willing to embrace innovation than the U.S. This gives companies like his the confidence to launch innovative products, aware that they will receive regulatory support.
He told Bloomberg, “Canada has proven that it has a process that leads to innovation and the systems to allow for it.”
Nate Geraci, the president of advisory firm ETF Store concurs. He believes that U.S regulators have lagged behind when it comes to innovative investment products. He remarked:
“It boggles my mind we still don’t have a Bitcoin ETF in the U.S. It’s understandable that there can be a difficult balance between embracing innovation and ensuring proper investor protections. However, given the existing Bitcoin products available to U.S. investors, a Bitcoin ETF would seem to strike that balance.”
Several firms have applied for a Bitcoin ETF license in the U.S, but the SEC has shut them all down. The latest to try its luck is NYDIG, a spinoff of Stone Ridge Asset Management. Under new leadership now following Joe Biden’s takeover, NYDIG believes the SEC could finally approve a Bitcoin ETF.