Institutional exchange-traded funds, or ETFs, have become increasingly popular in the cryptocurrency sector. On this occasion, it appears that Canadian investors in ETFs are bullish on Bitcoin.
Lex Moskovski, chief investment officer at crypto-focused hedge fund Moskovski Capital, shared a Glassnode chart on Twitter. That graph shows that Canadian ETF investors remain bullish on the cryptocurrency.
The chart reflects the performance of the Purpose Bitcoin ETF, which was launched in February 2021 following approval by Canadian regulators. It shows that for the past two weeks, Bitcoin ETF investors are racking up stocks, indicating that there is still demand for BTC.
What interest are Canadian investors in ETFs?
At this point it is worth recalling how Bitcoin was hitting all-time highs this year before plummeting after Elon Musk comments that BTC mining is bad for the environment. Later, the decline was reinforced by the Chinese government’s crackdown on mining farms.
From its all-time high of over $ 63K in mid-April, Bitcoin is now hovering around $ 34K, but the market crash has apparently not spooked investors in Canada. In June, Purpose Bitcoin ETF holdings hit an all-time high of 19,692,149 BTC as Bitcoin already fell to $ 33K. This is almost half of its all-time high.
The Purpose Bitcoin ETF is the first in Canada and North America
«When we launched Purpose Bitcoin ETF, we knew we were filling a gap in the market. Reaching this milestone so quickly shows that investors are looking for convenient and secure access to cryptocurrencies.Som Seif said. Seif is the founder and CEO of Purpose Investments Inc., the company behind the fund.
The approval of a Bitcoin ETF in Canada was anticipated to encourage neighboring countries to do the same, but to date, regulators in the United States have yet to approve a Bitcoin ETF. «I thought that if we had applied our standards as we have applied them to other products, we would have already approved one or more of them“Said SEC Commissioner Hester Peirce.
Peirce, who has been pushing for a Bitcoin ETF to be approved in the United States, explained that the reasoning used in the past to disapprove such a fund has weakened. He also noted that the Bitcoin market has already matured with increased participation from institutional retailers and major investors.