Despite being delayed for years, North America now has a Bitcoin exchange-traded fund (ETF) launched and ready. Showing the level of demand for Bitcoin exposure, the ETF hit some impressive numbers in its first full trading day.
Investor Demand Still High
This week. Purpose Investments, a Tronto-based investment and asset management firm, launched its Purpose Bitcoin ETF following regulatory approval from the Ontario Securities Commission (OSC).
The fund sold $165 million worth of units on its first day, marking an impressive benchmark for investor demand. Bloomberg Law reported that the fund moved a staggering $80 million in units in its first hour of trading, although naturally, the number eventually slowed down as time went on. With $165 million as the day’s total amount, Purpose Investments will definitely be looking at a bright future.
In a press release, Som Seif, Purpose Investments chief executive and founder, explained that the firm believes Bitcoin has a bright future.
“Driving forward to be the leader in cryptocurrency investing is a testament to Purpose’s goal of providing investors with alternative investment solutions that are not based on traditional benchmarks,” he added.
Purpose Investments’ website noted that the fund is backed by 85.34569077 BTC, with the company hoping to add more of the asset in proportion to the number of purchased fund shares.
The ETF Race is On
While the firm will be looking to enjoy incumbency power for as long as possible, competition in the ETF space is already heating up. This week, the OSC also greenlit a Bitcoin ETF from Evolve Funds Global Group Inc., a financial services firm in the county. The fund, which Evolve filed earlier this month, will have two tickers – EBIT for Canada-denominated units, and EBIT.U for American-denominated units.
The Evolve ETF will be available in all Canadian provinces, and the firm also has conditional approval to list it on the Toronto Stock Exchange (TSX).
In the United States, crypto investment firm Bitwise Asset Management and investment fund New York Digital Investment Group (NYDIG) have both filed separate ETF applications with the Securities and Exchange Commission (SEC). Both firms will be looking to capitalize on the new administration’s prospect for moving the crypto industry forward to advance their ETF agendas.