Purpose Bitcoin ETF Worth Over $1 Billion
The Purpose Bitcoin ETF is now worth over $1 billion in assets less than 2 months after launching on the Toronto Stock Exchange.
The Purpose Investments Fund was the first ETF to be granted a licence by the Canadian SEC and it has proven the incredible desire from investors who demand exposure to Bitcoin traded products.
On its first day of trading, the Bitcoin ETF traded a record $200 million, and was the highest traded ETF of any asset class that day.
By the end of its first week, the Purpose ETF had accumulated more than $500 million as the Canadian SEC authorized two more Bitcoin ETFs.
Surely The US Will Follow Suit After The Success of Purpose ETF?
The Purpose Bitcoin ETF has broken all records, and even with Grayscale (GBTC) dominating the markets before Purpose launched, the relative success of Purpose ETF has dwarfed GBTC.
The Purpose ETF is much more liquid than something like the Grayscale Trust, and with management fees of 1% the Purpose ETF is also much cheaper than GBTC’s 2%.
And with the Bitcoin bull market in full swing, every investor and his dog wants a Bitcoin ETF. The Toronto-based Purpose Investments (BTCC) has proven how much desire there is for a Bitcoin ETF, and with Canada leading the way it can’t be long before there is one on a US market.
The Purpose Bitcoin ETF cannot be traded on US stock exchanges, so many institutions cannot get exposure to it, which is also the case for the Grayscale Bitcoin Trust (GBTC) which trades on a Toronto OTC desk.
However, with Gray Gensler now voted in as the next chairman of the SEC, a Bitcoin ETF approval is expected.
There were many proposals before last year, but then chairman Jay Clayton denied everyone. Clayton was retired from his position in December 2020, however, and since then we have had an influx of Bitcoin ETF proposals.
A US Bitcoin ETF Would Likely Smash All Records
The US market is much bigger than the Canadian market so a Bitcoin ETF traded out of the US will smash $1 billion on its first day of trading.
The desire for a Bitcoin ETF has been proven in Canada, which now has three. And with institutions such as Fidelity submitting proposals, it’s unlikely the SEC will turn them down, especially now Gary Gensler is at the helm.
When a US-based Bitcoin ETF is granted, it will break all records and the desire from institutions, family offices and retail investors will, dare I say it, send the Bitcoin price to the moon.