August 5, 2021

Institutional Demand Persists: The Purpose Bitcoin ETF Now Holds 22,500 BTC

2 min read

The demand for the Purpose Bitcoin ETF has actually resumed after the mid-May decrease. Consequently, the company’s product has actually increased the bitcoins it holds by practically 30% in less than 2 months.

Function BTC ETF Holds Almost 22.5 K Coins

CryptoPotato reported earlier this year when Canada’s Ontario Securities Commission (OSC) approved a filing by the monetary services company – – Purpose Investments – to introduce an exchange-traded fund tracking the efficiency of the primary cryptocurrency.

When released, the Bitcoin ETF enjoyed a highly favorable start as it attracted over $400 million in AUM in simply a few weeks. However, the market-wide retracement followed in May, moved by FUD from Elon Musk and China and intensified by over-leveraged positions.

As a result, financiers stopped allocating funds in the ETF – – just the opposite, they sold off significant portions, and the company’s holdings decreased quickly. This accompanied numerous reports claiming that institutional demand has decreased too.

Nevertheless, it appears the trend has changed once more, as Glassnode recently asserted. The analytics company said on June 24th, “considering that 15-May, a total of 3,446 BTC have actually flowed into the ETF, an average of 86.15 BTC per day.”

This wasn’t a one-time occurrence, as more current information from the company reaffirmed the resuming hunger from investors. Consequently, the Purpose Bitcoin ETF has continued to increase its holdings and presently has just under 22,500 bitcoins. With today’s USD rates, this considerable quantity is close to $800 million.

Purpose Bitcoin ETF Holdings. Source: Glassnode

Purpose Bitcoin ETF Holdings. Source: Glassnode What About the US? It’s worth keeping in mind that soon after Canada’s regulator authorized the application from Purpose, it did so for 2 more Bitcoin exchange-traded funds. However, the situation with Canada’s southern next-door neighbor is considerably different.

The US Securities and Exchange Commission continues to turn down many applications annually. A number of business have submitted with the watchdog this year alone, and it seems VanEck could be the closest to a positive outcome. Nevertheless, the company postponed the decision as soon as again last month.

Surprisingly, the SEC’s Commissioner, Hester Peirce, recently suggested that the regulator should have approved a Bitcoin ETF a very long time ago as its examination methods are obsoleted.