Bloomberg analyst on Canadian bitcoin ETF: $1bn in assets under management by Friday

Eric Balchunas said Purpose’s bitcoin ETF could overtake all other ETFs in Canada within 2 months.

After just two days of trading, the first Bitcoin (BTC) exchange-traded fund in North America has reached more than $400 million in assets under management. The volume is expected to grow even further.

According to a tweet by Bloomberg analyst Eric Balchunas, the Bitcoin exchange-traded fund recently launched by Canadian firm Purpose Investments is likely to reach US$1 billion in assets under management by 26 February. Shortly before, Purpose Crypto Engine reported its bitcoin ETF had traded US$421.8 million in the period between its listing on the Toronto Stock Exchange (TSX) on 18 February and the close of trading on Friday. The ETF is listed under the ticker BTCC.

Balchunas compared Purpose’s bitcoin fund’s impressive start to other ETFs currently trading on the TSX. With more than $4.6 billion in total assets, the JPMorgan BetaBuilders Canada ETF is one of the largest ETFs in the country. The Bloomberg analyst said he „wouldn’t be surprised“ if Purpose’s bitcoin ETF outperformed all others in Canada within two months. That is, unless there is an unexpected „nasty sell-off“.

The Purpose ETF is not the only bitcoin exchange-traded fund in North America

Last week, Evolve Funds Group also received approval from Ontario’s securities regulator to launch its own bitcoin ETF, which began trading on Friday under the ticker EBIT. By Friday’s close, EBIT.U had traded 103,595 units at a price of $21.54.

While some investment managers have suggested that the US Securities and Exchange Commission (SEC) under US President Joe Biden may be more open to a bitcoin ETF, regulators in the United States have yet to give it the green light. New York-based Digital Investment Group and Dallas-based Valkyrie Digital Assets have applied for a bitcoin ETF since the new president took office.

According to the TSX, BTCC.B has traded 9,270,111 units at a price of US$10.55 and BTCC.U has traded 2,065,855 units at a price of US$10.57