Bitcoin ETFs in Europe and Canada also remain popular with the proliferation of US ETFs

Investor interest in Bitcoin-Backed Exchange Traded Funds (BTC) – Bitcoin ETFs and closely related Exchange Traded Products (ETPs) listed in Canada and Switzerland remains high, despite a Bitcoin futures-backed ETF now Available in the US, data compiled by Cryptonews.com shows.

Bitcoin ETFs in Europe and Canada now

The Purpose Bitcoin ETF (BTCC) was introduced to the North American market as the first Bitcoin ETF, which was launched in Canada on February 18 of this year. Since then, four more Bitcoin ETFs have been listed in the country: Evolve Bitcoin ETF (EBIT), CI Galaxy Bitcoin ETF (BTCX), 3iQ CoinShares Bitcoin ETF (BTCQ) and Fidelity Advantage Bitcoin ETF.

Of these, Fidelity’s ETF, which was last listed, will go live on Dec. 2 after the company received feedback from U.S. regulators on its plans to list.

Canadian Bitcoin ETFs differ from US publicly traded ETFs in that they are all backed by “physical” Bitcoins, while US publicly traded Bitcoin ETFs are backed only by futures contracts, which is both the complexity and cost of the Management of the ETF increased.

Bitcoin ETFs in Europe and Canada remain popular

Since BTCC was listed as Canada’s first Bitcoin ETF, its assets under management (AUM) have grown significantly, and even rose relatively sharply in times of lower Bitcoin prices.

Demand for ETFs in particular remained strong, even after the first Bitcoin futures ETF, BITO, hit the US market on October 19 this year. Instead of seeing a decline in assets under management, capital continues to flow into the fund, suggesting that physically-backed ETFs are not at all threatened by newer, future-proof ETFs.

Looking at the trading volume of Canada’s second Bitcoin ETF, EBIT, it becomes clear that interest remains high, with a higher trading volume in November than in the days immediately following its launch in May.

On December 21, ABTC’s average trading volume over 20 days was 12,840 shares, compared to a 20-day moving average of nearly 60,000 shares at the beginning of the year. As with Canada’s first Bitcoin ETF, the trading volume in EBIT did not react negatively to the introduction of the first Bitcoin ETF in the USA, but rather interest increased in the following days, listed in the USA on October 19.

A number of physically deposited Bitcoin ETFs are also listed in Europe, with Switzerland having been known for a number of years as a finance-friendly country for the listing of Bitcoin ETFs. The country is currently home to many Bitcoin-focused ETFs and ETPs issued by well-known companies such as WisdomTree, 21Shares, CoinShares, and VanEck.

Among the various Bitcoin investment vehicles listed in Switzerland, WisdomTree’s BTCW ETF shows a relatively stable trading volume at the end of the year. Like many Canadian ETFs, BTCW peaked shortly after the first Bitcoin futures ETF was listed in the US. For BTCW, October 20 marked the peak of interest for traders with 633,572 shares to switch hands on that day, compared with just 38,326 on Tuesday.

Finally, the Switzerland-listed Bitcoin ETF from 21Shares, ABTC, saw a slight decline in trading volume in the second half of the year. Lower trading volume contrasts with much greater interest in this ETF in late 2020 and early 2021, when the choice of Bitcoin-backed investment products was more limited.

On December 21, ABTC had traded 3,976 shares, compared to a 20-day moving average of nearly 60,000 shares at the beginning of the year.

Unlike some other ETFs in Canada and Switzerland, ABTC had no significant impact on trading volume after BITO went live in the US.

When you look at how interest in these funds has changed since the first supported Bitcoin futures ETF, it’s clear that the launch of the first Bitcoin futures ETF in the US this fall is a big deal for the market . This is true despite the fact that the first ETF and all other Bitcoin ETFs approved in the US since then were backed by futures contracts rather than physical bitcoins held by investors.

However, an easy way to get into Bitcoin price via the US stock market has certainly piqued interest in cryptocurrencies as an investment in both North America and Europe, as demonstrated by these markets.

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