The first Bitcoin exchange-traded fund in North America is launching with a bang.
On day one, investors exchanged $165 million worth of shares of the Purpose Bitcoin ETF after its debut on the Toronto Stock Exchange on Thursday, according to data from Bloomberg.
ETFs are regulatory-compliant investment vehicles available to both retail traders and institutions.
Purpose Investments, the fund’s issuer, says the ETF will invest directly in physically settled Bitcoin (BTC), and not derivatives. Like physically-backed gold and silver products, the ETF will also be directly backed by physically-settled Bitcoin holdings.
In a statement, Purpose CEO Som Seif says investment opportunities come with the increased recognition of BTC as a new asset class.
“We believe Bitcoin, as the first and largest asset in the emerging cryptocurrency ecosystem, is poised to continue its growth trajectory and adoption as an alternative asset.”
The launch of the ETF comes as Bitcoin extends its bull run, soaring past $52,000 to hit a new all-time high this week.
In the states, the investment management firm VanEck has renewed its efforts to launch a Bitcoin ETF, which would trade on the Cboe BZX Exchange. So far, the SEC has denied all attempts to launch a BTC ETF in the US.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Maciej Bledowski