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In less than two months, one Canadian Bitcoin ETF accumulated $1.1 billion in assets under administration, while two other funds are now increasing their AUMs.
The Purpose Investments ETF, the first Bitcoin (BTC) exchange-traded fund to open in North America, has grown to $1.1 billion in assets under management in less than two months. Two Bitcoin ETFs that debuted in Canada shortly after Purpose’s have seen their AUMs grow to a combined $200 million in the same time span, bringing Canada’s total Bitcoin ETF nett worth to about $1.3 billion.
The Purpose Bitcoin ETF debuted in late February, with nearly $100 million in trading volume on its first day. In the first week, the ETF amassed more than $500 million in funds under control as buyers scrambled to obtain access to Bitcoin markets without having to buy the underlying asset.
The regulators’ approval and subsequent introduction of the aim ETF opened the floodgates for Canadian Bitcoin companies, and two more ETFs were released in the following weeks.
The success of Purpose’s ETF was a prime example of a first-mover advantage in full effect, as it continues to hog the lion’s share of Canada’s nascent ETF industry. Evolve Fund Group’s Bitcoin ETF commenced operations just two days earlier and has accrued just $106 million in AUM, according to its website, despite offering 25% lower management fees than Purpose.
Likewise, the CI Galaxy Bitcoin ETF, which launched just a few days later still, currently has just over $90 million in AUM, this time slashing management fees to 0.4%, reports Canada’s Globe and Mail. All ETFs, however, have seen their respective values rise in line with Bitcoin’s own meteoric ascent in recent times, with each unit priced higher now than at launch.
A slew of American firms have filed applications with the Securities and Exchange Commission for Bitcoin ETFs. However, no funds have been accepted on American soil to date. In recent months, Galaxy Digital, SkyBridge Capital, and Fidelity, among others, have all filed ETF applications. And, while the general consensus is that one (or all) will be accepted ultimately, the timing is far from definite.
Some experts predict the United States will see the introduction of the first Bitcoin ETF within one to two years, whilst others believe Bitcoin’s recent rise, along with the example of other North American regulators, will expedite the method.