Bitcoin ETF celebrates premiere: Investors pounce

Bitcoin ETF makes Canadian debut: Investors pounce

In Canada, the dress rehearsal of a Bitcoin ETF went off brilliantly. This should not have escaped the notice of its neighbour.

On its first day of trading, the Purpose Bitcoin ETF listed on the Toronto Stock Exchange already recorded record-breaking volume. As Bloomberg reports, the trading volume Bitcoin Pro amounted to 165 million US dollars. In the first hour of trading alone, volume was US$80 million.

First Bitcoin ETF on North American soil

Many US investors continue to wait in vain for a Bitcoin exchange-traded fund. So far, the US Securities and Exchange Commission (SEC) has blocked every application for admission. Corresponding applications by Bitwise and Wilshire Phoenix have met with granite from the regulators in the past. The SEC has always justified its rejection with market manipulation concerns.

However, as the crypto market environment has become safer in recent years and more and more institutional investors are looking for suitable investment vehicles, applications are currently piling up. With VanEck, Valkyrie Digital Assets and the New York Digital Investment Group (NYDIG), three investment companies have recently expressed interest in ETF approval.

The SEC is therefore likely to be watching the Bitcoin ETF premiere in Canada with wary eyes. And it was already very promising on the first day of trading. With a total volume of 165 million US dollars, the Bitcoin fund traded on the Toronto Stock Exchange (TSX) already met with broad demand on the first day of trading. The Purpose Bitcoin ETF is listed under the ticker symbols TSX:BTCC.B for Canadian dollars and TSX:BTCC.U for US dollars and invests in physically backed Bitcoin. The management fee is one per cent for a term of one year.

In a press release, Som Seif, founder and CEO of Purpose, states:

We believe that as the first and largest asset in the emerging cryptocurrency ecosystem, Bitcoin is poised to continue its growth trajectory and acceptance as an alternative asset, further cementing the investment opportunity it represents.

Polkadot ETP takes off

But it’s not just bitcoin that is attracting the attention of major asset managers. The decentralised finance (DeFi) space is also increasingly coming to the attention of institutional investors.

Coindesk reports that the likes of Goldman Sachs, ICAP, JPMorgan, and UBS have already bought shares in the Polkadot ETP. UBS has bought 2,770 shares, JPMorgan 500 shares, ICAP 1,000 shares and Bank of America’s Merrill Lynch 2,200 shares. The Polkadot ETP was listed on the Swiss stock exchange by 21Shares at the beginning of February.

The fact that industry giants are entering the Polkadot ETP shows the increasing DeFi acceptance by institutional investors. The still young market has been hinting at its immense growth potential since 2020. Polkadot is one of the most promising DeFi showcases. With a market capitalisation of more than 31 billion US dollars, the coin, which is only a few months old, is already the fifth largest cryptocurrency.