As one of the first approved Bitcoin ETFs on the market, the exchange-traded fund Purpose Bitcoin has increased its current holdings to around 22,500 BTC. Demand for the fund has continued to pick up after falling in mid-May, so a nearly 30% increase in total Bitcoin holdings in the fund in less than two months is a positive sign.
Earlier this year, the Ontario Securities Commission of Canada (OSC) approved an application by financial services firm Purpose Investments to set up an exchange-traded fund to track Bitcoin activities. After its release, the Bitcoin ETF got off to a positive start, attracting over $ 400 million in assets under management (AUM) in just a few weeks. However, the market-wide withdrawal in May was fueled by Elon Musk’s FUD and crackdown from China.
This is also one of the reasons why investors stop allocating capital in ETFs. Instead, they sold a significant portion, which caused the company’s BTC holdings to decline rapidly. This agrees with several reports that institutional investor demand has also declined during this period.
However, the trend seems to be changing again, as Glassnode recently claimed. Analytics company said that a total of 3,446 BTC has flowed into the ETF since May 15, an average of 86.15 BTC per day. The wind has turned, the Purpose Bitcoin ETF continues to increase its holdings and is now 22,500 BTC, around $ 800 million at current prices.
Purpose Fund Bitcoin ETF Holdings | Source: Glassnode
It’s worth noting that shortly after the Purpose filing was approved, the Canadian regulator did the same for two other Bitcoin exchange-traded funds. With Canada’s southern neighbor, however, the situation is exactly the opposite. The United States Securities and Exchange Commission (SEC) rejects numerous ETF applications each year. Several companies have filed for the Watchdog this year alone, and it looks like VanEck may be the closest thing to a positive result. However, the agency delayed its decision to re-approve a Bitcoin ETF last month.
Interestingly, SEC Commissioner Hester Peirce recently revealed that the regulator should have approved a Bitcoin ETF long ago because its testing methods are out of date.
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According to Crypto Potato
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