The largest Canadian Bitcoin ETF is hitting back-to-back all-time highs with respect to its BTC holdings as inflows intensified.
But Bitcoin ETF sees huge capital injection
Citing data from the blockchain intelligence platform, glass knot, market analyst Jan Wüstenfeld revealed that ETF Purpose Bitcoin currently holds over 36,000 BTC, which signifies a 23% increase in holdings since the start of the year. The exchange-traded fund closed with an AUM of 34.07k BTC last week, adding over 2k BTC this week.
The latest news comes at a time when Bitcoin’s price has been improving despite persistent geopolitical tensions. Over the past week, the largest cryptocurrency was up by more than 11% and touched $45,000 earlier today.
Purpose Bitcoin ETF is the first cash-driven ETF not only in North America but also in the world. The investment vehicle holds actual Bitcoin rather than a futures contract and was launched by Purpose Investments under the ticker BTCC in February 2021. Just a month after going live, the ETF raised $1 billion in assets under management, making it one of the fastest. -the growth of ETFs.
Despite giving the nod to some investment vehicles linked to BTC futures last year, the US Securities and Exchange Commission has denied the listing of any spot Bitcoin ETFs so far.
However, Bloomberg Intelligence analysts James Seyffart and Eric Balchunas think that could change. In a recent post to clients, the duo wrote that a proposed rule change to change the definition of “exchange” by the regulatory watchdog could lead to ETFs receiving a green signal by mid-2023.
BITO’s Growing Bitcoin Exposure
Apart from the physically-settled Bitcoin ETF, ProShares’ Bitcoin Strategy ETF (BITO) has also grown to a fresh high of more than 28k BTC after noting weeks of solid inflows. This was revealed by a recent edition of Arcane Research that said,
“Strong inflows into futures ETFs can have ripple effects on the price of Bitcoin as market makers seek delta neutrality, causing them to accumulate more in the spot market to offset any potential net short exposure. “
The analytic company also noted that the strong inflows to BITO essentially demonstrated that appetite for the largest cryptocurrency through traditional investment vehicles is on the rise.
