Canada’s Purpose Bitcoin ETF Strikes Over $150 Million In Trading Volume on Debut

19. Feb 2021 Posted by Akolkar B on News

Purpose Bitcoin ETF - the first Bitcoin ETF of North America, shares of which are trading on the Toronto Stock Exchange (TSX), made a blockbuster debut clocking more than $150 million in daily trading volume, as reported by Bloomberg Law.

Only during the first hour of trading, the Bitcoin ETF registered more than $80 million in trading volume. However, it has slowed significantly since then. The issuer of the Purpose Bitcoin ETF said that the fund invests directly in the "physical/digital Bitcoin”.

In the press release, Purpose founder and CEO Som Seif said that his companies sees a potential future ahead for Bitcoin (BTC). Seif stated: “We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset, further cementing the investment opportunity it presents. Driving forward to be the leader in cryptocurrency investing is a testament to Purpose's goal of providing investors with alternative investment solutions that are not based off of traditional benchmarks.”

The official website of Purpose Investments shows that its Bitcoin ETF fund is backed by 85.34569077 BTC. Besides, the company is firm of getting more Bitcoins proportionate to the quality of the shares purchased.

Purpose’s stellar debut for its Bitcoin ETF comes just at a time when BTC has been trading at its all-time high. Earlier today, Bitcoin (BTC) price touched a new all-time high of $52,901. At press time, BTC is trading 2.19% up at $52,728 with a market cap of $982 billion, as per data on WorldCoinIndex.

Bitcoin (BTC) has been on an unstoppable journey since Tesla’s $1.5 billion Bitcoin purchase last week. The BTC price has skyrocketed more than 30% since then. Following Tesla, some of the big corporates like Twitter have also shown interest in putting its excess reserve cash into Bitcoin.

Besides, the world’s largest asset management company BlackRock said that it has started to ‘dabble’ into Bitcoin (BTC) looking at the global macroeconomic conditions. BlackRock said that it holding the highest amount of reserve cash historically. On the other hand, with fears of inflation and negative interest rates, Bitcoin seems a prudent choice as a hedge.

Crypto market Analysts are bullish on the arrival of Bitcoin ETF in the U.S. market. Earlier this week, Digital asset manager NYDIG filed for a Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).