Purpose Bitcoin ETF, a Canadian exchange-traded fund, purchased a huge 6.9k BTC just yesterday, making its largest Bitcoin buy of almost $2 billion in a day by a massive margin, according to statistics from blockchain intelligence company Glassnode. Previously, the highest daily inflow was roughly 2.9k BTC.
The total AUM for the Purpose Bitcoin ETF has increased to CA $1.5 billion.
With this new purchase, the Purpose Bitcoin ETF’s total assets under management (AUM) have increased to CA$1.5 billion (US$1.2 billion), with 41620 BTC under management as of press time. However, due to the current crypto market fall, the ETF’s YTD daily returns are down by 30%.
“Per data from cryptocurrency information platform Coinglass, late last month, the ETF purchased a total of 1,132 Bitcoin after selling off some of its assets the previous month amidst the Bitcoin bear market that has plagued the asset throughout this year.”
Purpose Investments created the Purpose BTC ETF – the first of its type – in February 2021 to allow investors to invest in BTC without actively trading the assets or holding it in their portfolio. After one month of trading on the Toronto Stock Exchange under the ticker BTCC, the ETF has gathered up to $1 billion in AUM.
Why is the Bitcoin ETF the next big thing?
Cryptocurrency ETFs are mutual funds that hold cryptocurrencies. Typically, a Bitcoin ETF allows investors to purchase funds that are directly linked to the price of BTC, allowing them to have investments in BTC without physically possessing the asset.
Due to the increased interest in digital assets and institutional acceptance, a few more ETFs backed by cryptocurrencies have appeared after the introduction of Purpose Bitcoin ETF. Valkyrie Bitcoin Strategy ETF, VanEck Bitcoin Strategy ETF, and others are examples.