North Americas first ever Bitcoin exchange traded fund has attracted over $400mln in investments in just 48 hours.
The Ontario Securities Commission (OSC) gave Purpose Investments the all clear to launch a Bitcoin exchange traded fund in early February and the product was finally launched February 18.
Purpose Investments Bitcoin ETF has been trading on the Toronto Stock Exchange under the tickers BTCC.B and BTCC.U. The first is the Canadian dollar denominated ETF non-currency hedged units and the second is the US dollar denominated ETF non-currency hedged unit.
As the announcement from the investment firm sums up, the ETF will invest directly in physically settled Bitcoin and not derivatives, which will give investors access to the preeminent cryptocurrency without having to hold the BTC in their own digital wallets. The Bitcoin ETF will be backed by physically settled BTC.
“We are so happy to be able to offer this innovation to investors, making the process of owning Bitcoin easier than ever. We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset, further cementing the investment opportunity it presents,” Purpose CEO and founder Som Seif said in a statement.
Investors clearly want in
In the 48 hours following the launch of trading of the Bitcoin ETF on the Toronto Stock Exchange, over $400mln was invested in shares of the EFT.
Bloombergs senior ETF analyst Eric Balchunas noted that the Canada Bitcoin ETF was the most traded ETF in the country in its first day of trading.
The Canadian Bitcoin ETFs success in its first few days of existence is a positive sign for the cryptocurrency space but American investors will be hoping that the US Securities and Exchange Commission changes its tune towards cryptocurrency ETFs in the future.
Several companies have filed for and failed to get approval for Bitcoin ETFs in the past, with the SEC usually citing security concerns.