- The Canadian Bitcoin ETF launched by Purpose Invest could reach $1 billion in AUM this week according to a Bloomberg analyst
- The initial success of the Purpose Invest Bitcoin ETF has made it the third biggest Canadian ETF on the market within 48 hours
- A second Canadian Bitcoin ETF from Evolve opened Friday, collecting $1 million itself
The Canadian Bitcoin ETF that launched last Thursday already has $421.8 million (US and CAD) under management, making it the biggest gaining ETF in the country by a factor of some 3.5x. Its success is such that one expert has claimed that, barring a Bitcoin correction, $1 billion in AUM is likely this week. The Canadian Bitcoin ETF, offered by Purpose Investment, is the first Bitcoin ETF offered in North America, although a second, offered by Evolve, launched Friday.
Canadian Bitcoin ETF Competition Hots Up
Purpose Investments was cleared to launch the first Canadian Bitcoin ETF on February 12 and it seems to have been just what the Canadian market was waiting for, collecting well over $100 million worth of investment on its first day and ending the week sitting on $421.8 million AUM. This makes is the third biggest ETF in Canada, with one expert, Bloomberg Intelligence ETFs analyst Eric Balchunas, predicting that the only way is up:
Canada Bitcoin ETF $BTCC traded $350m (CAD+USD) today, a 40% jump from yesterday (defying typical Day Two dropoff) and 3x more than any other ETF (unreal). Proportionally speaking this is equiv to about $5b in volume in US (or about 7x more than $GBTC). Two-day aum est $330m. pic.twitter.com/jqJfQGRsnp
— Eric Balchunas (@EricBalchunas) February 19, 2021
Purpose Investment’s Canadian Bitcoin ETF wasn’t the only offering for long – on Friday the Evolve ETF launch and collected US$1 million on its first day, so it will be interesting to see how their market share performs this week.
US Launch on the Horizon?
The initial success of the Canadian Bitcoin ETF market offers hope that a U.S. version will be granted this year. There are currently three offers in the works from VanEck, Valkyrie, and NYDIG, although the timescale for the U.S. Securities and Exchange Commission tends to be much longer than with the Canadian securities regulators, raising doubts that even if any of the three are successful it won’t be in the calendar year of 2021.