One of the first approved Bitcoin ETFs, the Canadian Purpose BTC ETF has increased holdings and currently holds around 22,500 BTC.
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Demand for the Purpose Bitcoin ETF has started to rise again after the mid-May drop As a result, the company’s product has increased its holdings by almost 30% in less than two months.
Earlier this year, it was reported that the Ontario Securities Commission (OSC) of Canada filed an application to launch an exchange-traded fund for Bitcoin. Once launched, the Bitcoin ETF got off to a pretty positive start as it attracted over $400 million in AUM in just a few weeks. However, it experienced a market-wide pullback in May, fueled by Elon Musk and the FUD from China, and intensified by overly leveraged positions.
As a result, investors stopped allocating funds to the ETF – on the contrary, they sold significant portions and the company’s assets were rapidly declining. This coincided with multiple reports claiming that institutional demand was also falling.
However, as Glassnode recently claimed, the trend has changed once again. “A total of 3,446 BTC has flowed into the ETF since May 15, with an average of 86.15 BTC per day,” the analytics company explained on June 24. This is not seen as a one-off event, as more recent data from the firm reaffirms the continued appetite of investors. As a result, the Purpose Bitcoin ETF has continued to increase its holdings and is now just under 22,500 Bitcoin. At today’s USD prices, this large sum is close to $800 million.