North America's first Bitcoin ETF is listed, with first-day trading volume reaching $145 million

North America's first Bitcoin ETF, Purpose Investments' Purpose Bitcoin ETF (stock code BTCC), delivered a perfect answer on its first trading day, with a trading volume of US$145 million.

BTCC invests directly in physical/digital bitcoin and was listed on the Toronto Stock Exchange on Thursday. Although there have been some similar bitcoin ETF products in Europe, BTCC is the first bitcoin ETF product in North America.

Bloomberg Intelligence analyst James Seyffart said that BTCC's trading volume is much higher than the first-day trading volume of other ETFs listed in Canada. Although it is too early to judge whether BTCC will be successful, supporters of the ETF believe that the fund can invest in Bitcoin without the high premium, which is currently common in many Bitcoin trust funds in the United States.

“It’s unlikely that the fund will trade at a significant premium to its net asset value,” said Todd Rosenbluth, director of ETF research at CFRA Research. “While most ETFs have to overcome the difficulty of educating investors to launch globally, many investors are familiar with what’s going on inside BTCC.”

Several companies in the United States have submitted Bitcoin ETF applications to the Securities and Exchange Commission (SEC), but allegations of price volatility and manipulation in the cryptocurrency space remain an obstacle to regulatory approval.

However, Bitcoin has been accepted by more institutions and large companies such as Tesla. With the new US government and the new SEC chairman taking office, analysts are confident that the first US Bitcoin ETF will be approved this year.

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AuthorLiang Che

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