Thursday, August 18

Bitcoin ETFs Launched in the US Outperformed Canadian Competitors


Key facts:
  • The ProShares bitcoin ETF has $ 1.2 billion in assets under management.

  • With less demand, the Valkyrie ETF trades about $ 10 million a day.

While bitcoin ETFs (BTC) launched in the United States in the last 10 days outperform Canadian funds issued in February and March in traded volume, the latter have a significant advantage in assets under management.

A bitcoin ETF is a fund that tracks the price of that crypto asset, either at the spot price, or at the price of a futures contract acquired and managed by the issuer. Funds launched in the US last week are based on futures contracts.

A little over a week after the launch of the first bitcoin ETF in the United States, the volume traded so far by funds from ProShares and Valkyrie exceeded that traded by the ETFs of Canadian companies Purpose Investments, 3iQ, Evolve and CI Galaxy Bitcoin in its early days.

At its launch on Tuesday, October 19, the ProShares bitcoin ETF (BITO) surpassed $ 1 billion in traded volume. Barring a BlackRock ETF with volume of $ 1.1 billion on its opening day, the ProShares bitcoin fund mobilized more at launch than any other ETF, in the 28-year history of these investment instruments. On the second trading day, BITO registered a traded volume of USD 1.22 billion.

On February 18, Canada was ahead of the United States in launching a bitcoin ETF, as reported by CryptoNews. Purpose Investments’ (BTCC) bitcoin ETF posted a volume of $ 165 million that day and $ 256 million on the second day, to total $ 421 million in two days. This represents 18.8% of what ProShares traded in its initial two days on Wall Street.

Regarding assets under management, these two funds are more comparable. BTCC has been in the market for 9 months and started with a fundraising of USD 340 million. Currently, with 23,910 BTC under management, Purpose’s fund has a total of USD 1.46 billion in assets.

Asset growth of the Canadian Purpose Investments ETF. Source: bybt.com.

According to the ETF website Canadian Purpose Investments, assets under management on the initial day reached USD 570.9 million and almost doubled on the second day. Subsequently, despite the notorious exchange of shares in 9 trading days, the assets managed by the ProShares bitcoin ETF closed this Thursday without a significant increase, at USD 1,177 million.

ETF Managed Assets in Canada and the US Source: Kaico.

For its part, according to figures from BitcoinTreasuries, 3iQ CoinShares Bitcoin ETF, another of the Canadian ETFs, slightly outperforms ProShares with USD 1,334 million under management. CI Galaxy Bitcoin ETF, according to your website, has a market capitalization of USD 442 million. The Evolve Bitcoin ETF, on the other hand, also issued in Canada, is the lowest in assets managed in that country: USD 104.47 million.

Canada ETFs Dominate In Managed Assets

Off the chart is the second US ETF, launched by the firm Valkyrie Funds on Friday 25, with a traded volume of USD 77.51 million on the first day of trading. For this Thursday, the total traded volume was USD 163.09 million and the market capitalization is USD 50.51 million.

If we add the capitalization market of all North American bitcoin ETFs a total of USD 4,577 million is obtained, of which USD 3,350 million or 73.2% correspond to Canada.

The bitcoin ETFs launched in recent days in the US represent 26.8% of the total assets managed in the two countries and total USD 1,277 million. In terms of managed assets, Canadian bitcoin funds manage almost three times the assets of US ETFs.

The ETF wave in the US is just getting started

The third launch, by the VanEck company, was announced and postponed for this Friday, but today it was confirmed on Twitter that it will take place next week. The launch of bitcoin ETFs in the US is just beginning, as the six mentioned represent a small fraction of the 19 applications filed with the SEC as of August this year.

There have been numerous new bitcoin ETF applications with the SEC – over 40, according to reports Bloomberg’s James Seyffart on Twitter. This quarter, accordingly, will possibly set a record for what represents a significant addition of bitcoin to traditional finance with properly regulated instruments.





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