Purpose Bitcoin ETF Holds 22.5K Coins, Indicating Strong Institutional Demand

One of the first allowed Bitcoin ETFs, the Canadian Purpose Bitcoin ETF, holds around 22.5K coins. After a brief dip in mid-May, interest in the Purpose Bitcoin ETF is returned. 

As a result, in less than two months, the company’s offering includes growth in the number of BTC coins it owns by over 30%.

The Purpose Bitcoin ETF Holds Nearly 22.5K Coins

When the Ontario Securities Commission (OSC) of Canada accepts a filing by the financial services firm Purpose Investments to create an exchange-traded fund following performing the main cryptocurrency.

The Bitcoin ETF gets off to a fast start, attracting over $400 million in AUM in only a few weeks after it was launched. However, a market-wide pullback ensued in May, pushed by Elon Musk and China’s FUD and exacerbated by over-leveraged holdings.

As a result, investors halted sending funds to the ETF – they sold off significant amounts, and the company’s holdings drop fast. This corresponded with several reports suggesting a drop in institutional demand.

However, as Glassnode recently said, the pattern appears to have shifted once more. According to the analytics firm, “since 15-May, 3,446 BTC have poured into the ETF, an average of 86.15 BTC each day.”

This was not a one-time occurrence, as more recent statistics from the business confirm the firm’s resumption of investor enthusiasm. 

As a result, the Purpose Bitcoin ETF’s holdings continue to grow, and it now holds nearly 22.5K coins. With today’s USD values, this enormous sum is close to $800 million.

Canadian #Bitcoin ETF have been ramping up its holdings the last two weeks.

Demand is still here. pic.twitter.com/QKbLnyHzFA

— Lex Moskovski (@mskvsk) July 3, 2021

What About The United States?

It’s worth mentioning that Canada’s regulators immediately accepted two other Bitcoin ETFs right after Purpose’s application. However, the situation with Canada’s southern neighbor is drastically different.

Every year, the Securities and Exchange Commission of the United States rejects many petitions. This year alone, several firms filed with the watchdog, and it appears VanEck may be the most likely to benefit. Last month, though, the agency postponed the decision once further.

SEC Commissioner Hester Peirce claims that the SEC should have approved Bitcoin ETF a long time ago since its inspection procedures are outdated.