The Purpose Investments ETF, the first Bitcoin exchange-traded fund (BTC) to launch in North America, saw its assets under management climb to $ 1.1 billion less than two months after launch. Two Bitcoin ETFs that were launched shortly after Purpose in Canada also saw their AUM increase to a combined $ 200 million over the same period, bringing the combined net worth of Canada’s Bitcoin ETF to around $ 1.3 billion. dollars.
The Purpose Bitcoin ETF launched in late February and generated almost $ 100 million in trading volume on day one. The ETF racked up over $ 500 million in assets under management in its first week, with investors rushing to access Bitcoin trading without having to own the underlying asset.
The acceptance by regulators and the eventual launch of the ETF target acted as an opening of the floodgates for Canadian Bitcoin companies, and two more ETFs were launched in the following weeks.
The success of the Purpose ETF has been a prime example of a first-mover advantage in full effect, as it continues to monopolize the lion’s share of the nascent ETF industry in Canada. Evolve Fund Group’s Bitcoin ETF started trading two days earlier and only racked up $ 106 million in AUM, according to its website, despite a management fee 25% lower than Purpose.
Likewise, the CI Galaxy Bitcoin ETF, which launched just days later, currently has just over $ 90 million in assets under management, this time cutting management fees to 0.4%, reports the Globe and Mail of Canada. However, all ETFs have seen their respective values rise alongside Bitcoin’s own meteoric rise in recent times, with each unit now more expensive than at launch.
A plethora of US companies have registered Bitcoin ETF applications with the US Securities and Exchange Commission. However, no funds have been approved on US soil to date. Galaxy Digital, SkyBridge Capital, and Fidelity have all filed for ETFs in recent months, among others. And while the general feeling is that one (or all) will eventually be approved, the timing is still far from certain.
Some analysts believe the United States will see its first Bitcoin ETF launch within one to two years, while others hope that Bitcoin’s recent rise, combined with the example of other North American regulators, will accelerate. the process.