Cointelegraph Team
Cointelegraph
The Purpose Bitcoin ETF now has over 21,000 BTC under management as the United States continues regulatory scrutiny.
The world’s first regulated Bitcoin (BTC) exchange-traded fund (ETF) actually benefited from the recent price dip, data shows.
As on-chain analytics service Glassnode noted on June 24, the Purpose Bitcoin ETF continued to add to its assets under management throughout the second half of May.
Purpose ETF crosses 20,000 BTC
In an unusual success story from the past few weeks, Canada’s Purpose did not see a significant reduction in holdings or demand after BTC/USD hit $30,000 and under.
Beginning May 15, an average of 86.15 BTC per day entered the ETF, for a total of 3,446 BTC between then and June 24.
In total, Purpose now holds 21,114 BTC worth around $720 million.
“Ever since the May 19th capitulation event, the Purpose Bitcoin Exchange Traded Fund (ETF) just keeps stacking sats,” popular Twitter account Dilution-proof summarized in one of the various positive reactions to the data.
Purpose ETF BTC holdings vs. BTC/USD chart. Source: Glassnode/ Twitter
Purpose was the first such Bitcoin ETF to get the green light from regulators in February 2021. As Cointelegraph reported, the United States has yet to respond, but should the products likewise get a debut there, the impact could be more significant given the difference in size between the U.S. and Canadian market.
“How many countries are going to have Bitcoin ETFs trading before the United States?” Jameson Lopp, co-founder, and CTO of Casa quizzed this week.
Worries over potential upcoming sell wave
The news provides a pleasing counter-narrative to the institutional trials facing Bitcoin post price drop.
The coming few weeks will see unlocking of BTC stored in the Grayscale Bitcoin Trust ($GBTC), something which is expected to heighten already intense selling pressure.
Whales have also come under the spotlight recently, balanced only by players such as MicroStrategy continuing to add to their BTC positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.