North America’s First Bitcoin ETF Debuts on TSX with a Whopping $220 Million Volume

The first Bitcoin exchange-traded fund (ETF) of North America has had a roaring start, with $220 million worth of shares exchanged by investors on the first day of going live, which is very well above an ETF’s typical day in Canada.

While there have been several crypto-tracking products in Europe that function like an ETF, they all have been essentially ETPs. Purpose Bitcoin ETF, with a ticker BTCC, is the first Bitcoin product that’s officially labeled as an exchange-traded fund.

The new fund debuted Thursday on Toronto Stock Exchange.

This fund invests directly in “physical/digital Bitcoin,” which is currently trading above $52,000, up 76% YTD.

“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” said Todd Rosenbluth, CFRA Research’s director of ETF research, adding it’s unlikely the fund will trade at a significant premium to net asset value (NAV). He added,

“While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC.”

Meanwhile, the US hasn’t approved a single Bitcoin ETF, although there have been several active filing for the product, including VanEck Associates Corp., NYDIG, and Bitwise Asset Management.

But with the change in leadership at the US Securities and Exchange Commission (SEC), the prospects of the first American Bitcoin ETF are rising. President Joe Biden’s nominee for SEC chairman, Gary Gensler, has the crypto market hopeful and excited as he has taught a class at MIT’s Sloan School of Management called “Blockchain and Money.”

Crypto-related products like Grayscale Bitcoin Trust (GBTC) and Bitwise 10 Crypto Index Fund have seen great demand with $34.22 billion and $900 million in assets under management, respectively.