Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
The emanation of the Bitcoin ETF in North America has been a good event but the US is still not sure of when their first Bitcoin ETF will see the light of the day.
Following the boom of the entire cryptocurrency market led by Bitcoin, the Asset Under Management (AUM) of the Canadian Bitcoin ETF under the ticket BTCC has been said to benefit from the demand with a predicted surge to $1 billion by Friday according to a Bloomberg analyst. The prediction for the AUM was guided by how the first Bitcoin ETF in North America hit the ground running in just two days of operation having recorded over $400 million in volume. The Bitcoin ETF was debuted by the Canadian firm, Purpose Investments Inc and has been said to have a lot of prospects to go all out with groundbreaking records in its area of operation.
What Guided the Prediction about Bitcoin ETF AUM?
Eric Balchunas, a Bloomberg Analyst was much informed by the report of the firm that between February 18 when it first appeared on the Toronto Stock Exchange and the time it closed on Friday, there was a significant trade volume of $421.8 million. The analyst did not hesitate to compare the Purpose Investments’ ETF to other running ETFs listed on the Toronto Stock Exchange. According to him, it would not be a surprise to see the newly listed ETF surpassing the rest of the ETFs in Canada in just two months considering its unprecedented takeoff.
As of Friday, BTCC.B had traded about 9,270,111 units for $10.55, and also, BTCC.U had traded 2,065,855 units for $10.57. The emanation of the Bitcoin ETF in North America has been a good event but the US is still not sure of when their first Bitcoin ETF will see the light of the day. In addition to the Purpose Investment’s Bitcoin ETF, there is also the one introduced by the Evolve Funds Group that got the regulatory green light from the Ontario Securities Commission to launch theirs under the ticker EBIT. The EBIT.U had traded 103,595 units for $21.54 as of the close of Friday.
Currently, the JPMorgan BetterBulders Canada ETF is the biggest in the country with about $4.6 Billion Assets Under Management.
During the announcement of their approved proposal to launch the Bitcoin ETF, Purpose Investment was said to allow direct investment of physically settled Bitcoin, not derivatives. This was to ensure that investors avoid the danger associated with self custody within the digital wallets by easily getting access to the emerging class of cryptocurrency. Purpose Investments was said to act as an ETF manager, and also take Ether Capital Corporation as a special consultant.
Unlike most of the ETF platforms, Purpose Investments is not only interested in providing access to digital assets, but offering a good education to investors. This will be done through their Cryptocurrency Content Hub introduced to ensure that investors are well equipped with the relevant tools and knowledge to understand the emerging asset class.