US Bitcoin ETF Stalls As Canada Bitcoin ETF Touches $1.3 Billion
Going by recent news, a Bitcoin ETF in Canada has accumulated over $1 billion in AUM under two months, while the two additional ETFs have witnessed a notable expansion of their AUMs. Leading the charge is Purpose ETF, with the first-ever Bitcoin ETF to launch in the country now recording a massive $1 billion asset under management in the last few months after its launch.
The other two ETFs have also recorded a noticeable amount of assets under management, with the combined figure of both ETFs now a total of $200 million. With this, the total assets under management of all three Bitcoin ETFs take Canada’s joint Bitcoin ETF value to rise to a figure close to $1.3 billion. This Purpose Investment Bitcoin ETF, established in February 2021, has garnered about $100 million trading volumes in the first day. ETF got over $500 million under the management of assets in the first week, making the investors quickly gain Bitcoin trading access without owning underlying assets.
The Launch of ETF Opens Way For Bitcoin Businesses in Canada
The regulator’s acceptance and the eventual creation of Purpose ETFs served as access to the opening of Bitcoin businesses in Canada. Two additional ETFs were created in the weeks after the first one launched. Purpose’s ETF success was the best example to describe the first-mover benefits since it continuously hogs the big share in the nascent Canada ETF industry. Further, Evolve Fund Group’s Bitcoin ETF started operations two days before that.
It has accrued only $106 million AUM despite providing 25 percent lower management costs than the Purpose. The CI Galaxy Bitcoin ETF was also established some days after and presently has only more than $90 million AUM; it slashes management fees this time to 0.4 percent. Meanwhile, every one of the ETFs has witnessed their values soar in line using Bitcoin’s meteoric ascent recently, as each of the units costs higher than at the launch currently.
US Firms Are Still Waiting For Their Bitcoin ETF approval
Some US firms have registered for Bitcoin ETF applications with the US SEC. But no ETF has been approved so far; SkyBridge Capital, Galaxy Digital, and Fidelity filed ETF applications recently. Though the feeling everywhere is that all or one of them would be eventually approved, it is still not close to certainty. Some experts think that the United States would witness its Bitcoin ETF launch for the first time in two to one year-time. At the same time, some analyst believes that the recent ascension of Bitcoin with North American regulators other instances would fasten the process.