The first Bitcoin (CCC:BTC) exchange-traded fund (ETF) in North America launched this week on the Toronto Stock Exchange and the Purpose Bitcoin ETF (TSX:BTCC) didn’t disappoint, with $165 million worth of shares changing hands in just the first day of trading.
While other close-ended cryptocurrency funds have been traded on TSX and via other platforms, BTCC is the first ETF offering, and comes at a pivotal moment for cryptocurrency investment, as the total market value of bitcoin surpassed $1 trillion Friday morning. That’s just the latest chapter of the dramatic bull run in cryptocurrencies over recent weeks, including BTC surpassing the $50,000 level.
“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” CFRA Research director Todd Rosenbluth told Bloomberg on Thursday, adding that investors’ familiarity with the underlying asset would be a boon for wider adoption. The interest in BTCC has many wondering if a Bitcoin ETF could be coming to U.S. exchanges this year, as increased investor interest and a changeover in SEC leadership create a more favorable regulatory environment.
Previous attempts to bring a bitcoin ETF to market on the U.S. exchanges have been rejected by the SEC over concerns around liquidity, volatility and price manipulation. At present, VanEck is the only issuer with an active SEC filing to bring a Bitcoin ETF product to market, though numerous others have tried over the years, beginning with cryptocurrency exchange Gemini founders Cameron and Tyler Winklevoss back in 2013.
At the time of writing, Bitcoin was trading for just shy of $55,000 a coin.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.