The First Ever Bitcoin ETF (BTCC) Surpasses $1 Billion in AUM in Just One Month

The US has yet to approve one, but issuers are rushing in. SEC Commissioner says “we’ve dug ourselves into a little bit of a hole” by not approving a Bitcoin ETF and is “hopeful” Gensler will help the agency think “in a more sophisticated way.”

The world’s first Bitcoin exchange-traded fund, Purpose Bitcoin ETF (BTCC), has exceeded $1 billion in assets under management (AUM) in just a month, announced Purpose Investments on its one-month anniversary.

In the US ETF market terms, this means hitting $27 billion within a month as the Canada ETF market is 1/27th the size of the US, noted Eric Balchunas, Senior ETF Analyst for Bloomberg.

So much interest in the first-ever Bitcoin ETF backed by physically settled BTC shows investor’s confidence in and demand for this burgeoning asset class.

“Hitting this milestone so quickly proves that investors are seeking convenient, safe access to cryptocurrencies,” said Som Seif, founder, and CEO of Purpose.

The ETF invests directly in BTC, and not derivatives, without the risk of self custody. Purpose is the manager of the ETF, and Ether Capital Corporation acts as a special consultant.

“Cryptocurrency ETFs have the potential to be truly revolutionary and are an important investor conduit into the space as the ecosystem continues to mature,” said Brian Mosoff, CEO of Ether Capital.

Currently, there are three Bitcoin ETFs available in Canada, while Latin America's first was approved in Brazil this week.

SEC has Dug itself into a Hole

Several companies have been rushing in to file for a Bitcoin ETF in the US, including SkyBridge, WisdomTree, NYDIG, and Valkyrie. Grayscale is also working on converting the fund into an ETF as it hires several ETF executives. In the meantime, the GBTC premium remains negative for the 17th day in a row.

But the US is yet to approve one.

The US Securities and Exchange Commission has actually “dug ourselves into a little bit of a hole,” said commissioner Hester Pierce, also known as ‘Crypto Mom’ about the agency not approving a bitcoin ETF.

During her interview with Blockchain Policy Matters, she urged her fellow regulators at the Fed to “really look” for the positives instead of reacting to the negatives.

She further encouraged more partnerships between the public and private sectors, which she said can help the regulators “sharpen our thinking.”

“A lot of the real innovation happens in the private sector. Don't try to squelch that out. And don't view this as a competition between the private and the public sector,” Pierce said. “There tends to be a conservatism which I think is reflected in a lot of comments from regulators.”

The commissioner also said she looks forward to working with SEC chairman nominee Gary Gensler, who once taught about digital currency at MIT. Pierce said she is “hopeful” Gensler will help SEC think “in a more sophisticated way.”

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